Waiting with bated breath on LNG Canada final investment decision

LNG Canada says it has not received confirmation of FID by all five partners — yet

Just as speculation on LNG Canada’s demise in 2016 may have been exaggerated, news that a final investment decision has been taken by all five partners that will build it may be premature.

On Sunday, September 30, Bloomberg reported that Royal Dutch Shell and its four partners have agreed to sanction the multi-billion dollar LNG Canada project in Kitimat.

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But LNG Canada said in a tweet last night that it has not yet been informed by all five partners that a final investment decision has been approved by all five.

“Another busy media day, isn’t it!” LNG Canada's official Twitter account tweeted.

“Wanted to let you know LNG Canada has not received a final investment decision from its Joint Venture Participants. You can be sure that if that happens, we will be the first to let you know!”

Based on a number of recent developments, however, it appears that an FID is a given – it’s just a matter of when, not if. A number of media have reported that the decision could come as early as today – October 1.

Recent developments that suggest an FID is coming soon include the federal government’s confirmation that it agrees that the LNG Canada project should be exempt from 45% steel tariffs, and sanctioning of project spending by two of the five partners in the joint venture.

PetroChina and Korea Gas Corp. (KOGAS) have been confirmed to have sanctioned their share of the project. The other partners – Royal Dutch Shell, Petronas, and Mitsibishi – have not been confirmed yet to have approved their share of the spending.

Based on PetroChina’s share – $4.5 billion – it appears the first phase of the project has a capital cost of about $30 billion.

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