Shell-led LNG Canada is reviewing four engineering, procurement and construction (EPC) proposals, aiming to choose ‘within the next six months’.
A spokeswoman for LNG Canada said the 24M tonne a year (mta) project is finalising its outstanding permits and preparing the site at Kitimat, British Columbia “in advance of an anticipated final investment decision (FID) by its joint venture participants”. Shell’s LNG Canada partners are PetroChina, Mitsubishi and South Korean utility Kogas.
“The project remains actively pursuing measures to improve competitiveness [and to] prepare the site for future construction after an FID has been taken by its joint venture participants,” the spokeswoman said.
Last year, LNG Canada put FID on hold, saying the partners needed more time to “define a revised path forward to FID”. Low oil and gas prices have weakened likely project returns.
LNG Canada’s statement comes after rival British Columbia project Woodfibre LNG announced this week that it will push back its decision to start construction. Observers expected Woodfibre LNG to become the first Canadian export project to come to market, having originally planned to start construction early in the new year.
In July, Petronas pulled out of its planned US$32Bn, 12.8 mta Pacific Northwest project, citing low gas prices. None of Canada’s proposed LNG-export projects have started construction. Six projects are under construction in the US.