KITIMAT, B.C. – Royal Dutch Shell and its partners in the LNG Canada joint venture could be announcing a final investment decision for the proposed $40-billion liquified natural gas terminal on B.C.’s North Coast as early as next week, with sources telling Bloomberg News that the partners will be approving the project.
Bloomberg is reporting that sources with direct knowledge of events say that preparations are underway for a final investment decision to be made on October 5th, with an LNG Canada event and fireworks display at a local golf course the following day.
Those anonymous sources added that the situation is fluid and the timing could change.
“We are currently reviewing the decision support package that LNG Canada submitted to joint venture participants,” said Shell Canada in an email to Bloomberg today. The company declined to comment on the announcement date and whether a final decision has been made.
The group has long said an investment decision will be made this year. British Columbia has set a Nov. 30 deadline for a final decision if the project is to claim as much as C$6 billion in tax breaks and savings.
On Tuesday, The Globe and Mail reported that the Federal government has conceded that LNG Canada can’t source steel domestically for the LNG facility, a decision that could clear the way for the project to be exempt from steel tariffs.
Unnamed officials from the Prime Ministers office are said to have told LNG Canada that it agrees the project will need to be built from imported steel.
LNG Canada requested an exemption from tariffs on the steel needed to build the facility – tariffs that could have added $1 billion to construction costs.
Prime Minister Justin Trudeau also met with Royal Dutch Shell CEO Ben van Buerden in New York Tuesday.
Last week, LNG Canada CEO Andy Calitz spoke with Bloomberg News from Vancouver, saying that the overall conditions for Royal Dutch Shell to make a positive final investment decision were good.
“That is, and feels, so very different to 2016 when the project was delayed,” said Calitz.
LNG Canada, which is a joint venture led by Shell and includes Mitsubishi, Petronas, PetroChina Co., and Korea Gas Corp. as partners, delayed making an FID twice in 2016.
Story courtesy Bloomberg News: https://www.bloomberg.com/news/articles/2018-09-26/shell-canada-said-poised-for-lng-decision-as-signs-point-to-yes