LNG Canada to double output from B.C. terminal that could boost demand for Peace Region natural gas

DAWSON CREEK, B.C. – LNG Canada’s decision to move ahead with a major expansion of its export terminal in Kitimat could have significant implications for the Peace Region, potentially creating new demand for natural gas produced from the Montney formation and supporting economic activity across northeastern B.C.

Official response and confirmed impact

LNG Canada announced Tuesday that its joint venture partners, including Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS, have made a final investment decision on the project’s second phase.

“LNG Canada Phase 2 is another nation-building investment that demonstrates Canada can build big things when governments, First Nations partners, local communities, skilled trades, contractors and investors work together with shared purpose,” said Chirs Cooper, president and CEO of LNG Canada.

LNG Canada is also working with Coastal GasLink to expand the capacity of the existing 670-kilometre pipeline that carries natural gas from northeast B.C. to the coast.

Five new compressor stations are planned along the route.

Links to the Peace Region While construction will take place primarily in Kitimat and along the Coastal GasLink corridor, the project’s connection to the Peace Region lies in the gas supply itself.

Incident background

The project is expected to double the facility’s liquefied natural gas export capacity from 14 million tonnes per year to 28 million tonnes.

The expansion includes two additional LNG processing trains, a new storage tank, expanded loading infrastructure and upgrades to supporting systems at the Kitimat site.