LNG Canada, the pioneer Canadian natural gas export project on the Pacific coast of British Columbia (BC), scored C$275 million ($206 million) in grants Monday from the Liberal government in Ottawa.
Shell Canada Energy Ltd. and its partners last fall sanctioned the major liquefied natural gas (LNG) export terminal. The Royal Dutch Shell plc unit, which holds a 40% stake, expects the 14 million metric ton/year project to be online and shipping to Tokyo Bay by the mid 2020s.
Finance Minister Bill Morneau announced aid of C$220 million ($165 million) for natural gas turbines and C$55 million ($41 million) for a bridge at the terminal site in Kitimat, 1,400 kilometers (840 miles) north of Vancouver.
Morneau described the grants as aid for a deserving venture that stands out as a C$40 billion ($30 billion) record private project in Canada that is expected to support 10,000 jobs, improve native livelihoods and enrich tax revenues.
The support follows recognition of government priorities by LNG Canada, in job awards to native contractors and creation of a construction trades training program for women with emphasis on recruitment from northern aboriginal communities.
The investment forecast includes the Kitimat terminal, its pipeline and northern BC supply development for eventual exports of up to 3.4 Bcf/d by the LNG Canada partners. Petronas has a 25% stake, while PetroChina Co. and Mitsubishi Corp. each hold a 15% share, and Korea Gas Corp. has a 5% stake.
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