At 85% complete, LNG Canada readies for world stage

Speaking at LNG 2023 in Vancouver, British Columbia, LNG Canada president and chief executive Jason Klein confirmed the progress on the 14-mta export facility, which he hoped would “pave the way for the next wave of Canadian LNG projects.”

One project in particular Mr Klein mentioned was Cedar LNG, a liquefaction project in Kitimat, British Columbia, just north of LNG Canada on the Douglas Channel. It is the first Indigenous majority-owned LNG export project In Canada.

Mr Klein said when LNG Canada does open, it will be the lowest carbon intensity LNG export facility in the world. This commitment began before its FID with the promise it would be served by “the world’s greenest tug fleet” in keeping with the project’s location on the pristine Douglas Channel in British Columbia.

One of those five green tugs, the all-electric Haisea Wamis, was moored outside the Vancouver Convention Centre to allow trade fair delegates to get a sneak peek at LNG Canada’s environmentally friendly escort tug fleet. “The tug just arrived this weekend,” said Mr Klein, “We were cutting it close.”

Designed by Vancouver-based Robert Allan Ltd, the ITS award-winning Haisea Wamis is one of three ElectRA all-electric tugs built by Turkey’s Sanmar Shipyards. The tugs, along with two RAStar 2800 DF design LNG-fuelled tugs, are owned by Haisea Marine, a joint venture of Seaspan ULC and the Haisla Nation.

Thanks to its green tug fleet, use of British Columbia’s abundant hydropower, the facility’s energy efficient GE gas turbines, the region’s lower ambient temperatures and close proximity to markets in Asia, Mr Klein expects LNG Canada to have a greenhouse gas intensity that is “35% below best in class.”

Canadian regulators point out that as ambient temperature decreases by 1°C, energy efficiency for power consumption increases by 1.7%. British Columbia has a cooler average ambient temperature than some of the world’s largest LNG-producing regions such as Qatar, Australia and the US Gulf Coast.

“The world needs more reliable energy sources to displace coal,” said Mr Klein, “and I can’t think of any country better placed than Canada to do that.”

LNG Canada is evaluating Phase 2 of the project, which would see increased use of renewable hydropower, and double the facility’s capacity from 14 mta to 28 mta.

Mr Klein said key permits for the expansion have been secured, but before an FID could be taken, additional infrastructure supporting increased electrification would be needed, along with positive determinations regarding the facility’s overall competitiveness and affordability. Discussions with government are continuing.