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Metro-One Dec 17, 2012 9:22 PM

Dang, talk about exciting times for BC! No more industrial butt of the joke if this goes through.

Stingray2004 Dec 24, 2012 6:21 PM

The first west coast lng project that received approvals was Apache/Encana/EOG Resources proposed 10 million ton/annum facility in Kitimat. The facility has previoulsy received NEB approval as well as BC environmental assessment certificates.

The problem was that these 3 North American natural gas producers only had experience in their upstream assets but had no lng experience, no lng tankers, no marketing arm with relationships to end-users, were cash-strapped, etc.

Speculation was that a global energy giant with lng experience and deep pockets would eventually step in and that's what Chevron did today.

Chevron purchased a 50% interest in the facility buying out Encana's and EOG Resources positions. Apache retains its 50% position.

Chevron has also purchased 110,000 net acres in NE BC's Horn River basin from Encana and 212,000 net acres in NE BC's Liard basin from Apache.

This lng facility is now on solid footing. Other lng energy giants such as Shell, Petronas, ExxonMobil, and British Gas Group also have lng facilities lined up in Kitimat/Prince Rupert.


Chevron’s 50% stake in Kitimat LNG boosts Canada’s natural gas prospects

Financial Post
Yadullah Hussain
Dec 24, 2012

Chevron Corp. has acquired a 50% stake in a liquefied natural gas project in Kitimat, B.C. boosting Canada’s prospects of shipping natural gas to Asian markets.

Chevron has a track record of building LNG infrastructure and has a number of projects proposed or under way in Australia, Angola, Nigeria and Asia.

Chevron Canada Ltd. will take on the assets of EOG Resources Canada Inc. and Encana Corp., which were struggling to market the project. Their divestment, valued by the Wall Street Journal at US$1.3-billion, makes Chevron an equal partner with Apache Corp., which led the initial project.

The project which was original valued at US$3-billion and has already secured approval, is set to export 10 million tons per year of LNG.

The deal also includes a 50% interest in approximately 644,000 acres of petroleum and natural gas rights in the Horn River and Liard Basins in B.C.

“This investment grows our global LNG portfolio and builds upon our LNG construction, operations and marketing capabilities,” said George Kirkland, vice chairman, Chevron.”It is ideally situated to meet rapidly growing demand for reliable, secure, and cleaner-burning fuels in Asia, which are projected to approximately double from current levels by 2025.”

Chevron Canada Ltd. also said it will buy around 110,000 net acres in the established Horn River Basin from Encana, EOG and Apache, and 212,000 net acres in the Liard Basin from Apache. Chevron and Apache will each hold a 50% interest and Apache will operate these two natural gas resource developments.

Stingray2004 Jan 10, 2013 3:33 AM

Today Malaysian energy giant Petronas partnered up with TransCanada Pipelines for a $5 billion pipeline from NE BC gas fields to Petronas' proposed Prince Rupert lng terminal.

Previously Shell also partnered with TransCanada Pipelines for a $4 billion pipeline from NE BC to its proposed lng terminal in Kitimat. In addition, British Gas (BG) Group partnered with Spectra Energy for a $6 - $8 billion pipeline from NE BC to its proposed lng facility in Prince Rupert. Chevron/Apache will also be looping an existing pipeline at a capital cost of ~$2 billion to the west coast for its proposed lng facility in Kitimat.

These pipeline projects alone total ~$20 billion in capital investment.


Petronas Taps TransCanada for Pipeline

Globe and Mail
Nathan Vanderklippe
Jan. 09 2013

Buttressing Canada’s position in the global race to export liquefied natural gas, TransCanada Corp. announced Wednesday that it plans to build a $5-billion pipeline to transport B.C. shale gas to the West Coast and onward to lucrative Asian markets.

The deal will see TransCanada build and operate a link to deliver natural gas to Lelu Island near Prince Rupert where Progress Energy Canada Ltd. – now a subsidiary of Malaysian state-owned firm Petronas – plans to build the massive Pacific Northwest LNG export facility.

The announcement shores up national efforts to catch up and compete with established LNG export projects in Australia and the Middle East, and will help Canada take advantage of strong natural gas prices in Asian markets versus depressed levels in North America.

“It’s a huge opportunity for Canada. But to capture that opportunity, we need to compete on a global basis,” TransCanada’s president and chief executive officer Russ Girling said in an interview Wednesday.

The proposed 750-kilometre pipeline will bring natural gas primarily from B.C.’s rich North Montney region to Pacific markets by late 2018, subject to regulatory and corporate approvals. Initial pipeline capacity is pegged at 2.0 billion cubic feet a day with the ability to expand to 3.6 billion. TransCanada estimates the pipeline project will create 2,500 construction jobs.

The announcement is the second recent B.C. victory for TransCanada. Last June, the company signed with Royal Dutch Shell PLC to build the $4-billion Coastal GasLink pipeline that would bring B.C. natural gas to the Kitimat area, where Shell and several Asian partners are planning another huge LNG terminal. Mr. Girling said his company’s pipeline building plans in B.C. are now in excess of $10 billion.

“This is in the sweet spot of our backyard in terms of an opportunity to grow earnings beyond the 2015 time frame,” he said.

And the avalanche of spending is unlikely to end at the many billions it will take to build pipelines and LNG facilities. Plans for additional investment are already under way as companies seek to buy reserves of natural gas that can be exported. Not far from the site selected by Petronas for its plant on the B.C. coast, Reading, England-based BG Group PLC has chosen its own plot of waterfront for LNG exports.

BG already has a deal in place with Spectra Energy Corp. to build a $6-billion to $8-billion pipeline to the water.

Stingray2004 Apr 5, 2013 8:25 PM

Pretty big news by the Government of Japan considering that Japanese majors Mitsubishi, Inpex, and others are already heavily involved in Canadian west coast LNG projects.


Japan Eyeing Billions In LNG Investments In Western Canada

Financial Post
Claudia Cattaneo | 13/04/04 6:04 PM ET

VANCOUVER • Japan is prepared to invest billions directly in natural gas infrastructure in Western Canada as part of a plan to secure massive supplies of liquefied natural gas to replace nuclear power, a top government advisor said Thursday.

Canada touts ‘energy superpower’ status to secure new customers in Asia

As the United States drags its feet on whether to approve the Keystone XL oil sands pipeline, Canada’s federal government is continuing its push to secure new energy customers in Asia.

The plan, a new model for Japan, could intensify the race by Asian countries to lock down Western Canada’s energy resources and infrastructure, which so far has been led by China.

Tokyo-based Tadashi Maeda, managing executive officer of the Japan Bank for International Cooperation, said Japan is ready to start discussions with private and government entities in Canada to support construction of pipelines and liquefied natural gas terminals to serve the Japanese market exclusively.

“The Japanese government is [prepared to make] a strategic investment for the purpose of developing a commodity market for natural gas, a more transparent and flexible market,” Mr. Maeda said on the sidelines of the Pacific Energy Summit, the platform picked by Japan to announce the plan. “So we are going to make some strategic investments to fill the gap of the infrastructure needs.

“The pipelines and export terminals are imperative. Therefore if it is needed, we are going to bring some capital to cover the cost of the infrastructure.”

While the plan is just now being rolled out, Japan hopes to nail it down “relatively quickly” so it can start importing Canadian LNG by 2020.

Japan found itself short of energy after the earthquake and nuclear disaster two years ago caused the country to back away from nuclear power because of safety concerns.

Mr. Maeda said only two of Japan’s 50 nuclear plants are still in operation. The energy gap has been filled by stringent energy conservation and a large increase in LNG imports.

Mr. Maeda said Japan is also looking at importing gas from the United States, but is keener to forge an energy partnership with Canada.

LNG transportation costs from Canada’s West Coast are lower because of its proximity to Asia and Japan believes LNG exports are more likely to move ahead from Canada than from the West Coast of the United States.

The Japanese government’s planned investment in Canada could take many forms, Mr. Maeda said. It could involve a consortium of Japanese energy companies benefitting from government loan guarantees or it could involve direct government investment. It could also mean financing for standalone pipelines and liquefaction plants that are not backed by supplies of natural gas.

Japanese companies are already participating in the nascent LNG industry in Western Canada. Six LNG export terminals are being planned for the northern British Columbia Coast. Japan’s Mitsubishi is a partner in the LNG Canada project led by Royal Dutch Shell PLC. Japan’s Inpex is a partner in a project planned by China’s CNOOC Ltd., which last year acquired Nexen Inc.

But the Japanese government wants to play a direct role because Japanese companies’ interests are not always aligned with those of the government, he said. For example, companies are free to sell the LNG to many markets, while Japan wants to be able to count on as much Canadian supplies as possible.

Japan is not worried that direct government investment will trigger a backlash in Canada similar to that stirred by the takeover of oil and gas producer Nexen by CNOOC because it doesn’t involve state-owned enterprises, he said.

Stingray2004 Apr 11, 2013 1:21 PM


International interest remains high in Liquefied Natural Gas (LNG)

Wednesday, April 10, 2013

VICTORIA - Four new, major international LNG project proposals have come forward following an Expression of Interest (EOI) by the provincial government on Crown land at Grassy Point near Prince Rupert.

Proponents who submitted an eligible EOI are:

1. Nexen Inc., an international upstream oil and gas company that develops energy resources in the UK North Sea, offshore West Africa, the United States and Western Canada. Joining Nexen in its submission are CNOOC, China's largest producer of oil and gas; INPEX Corporation, a petroleum company based out of Japan; and JGC, a leading global engineering company.

2. Woodside Petroleum Ltd., Australia's largest independent oil and gas company who now operates six of the seven LNG processing trains in Australia.

3. SK E&S, a multi-utility player in Northeast Asia's gas and electricity business, based in Korea.

4. Imperial Oil Resources Limited, one of Canada's largest corporations, and ExxonMobil Canada Ltd., the largest international oil and gas company in the world.

The new proposals join a growing list of major international proponents which have expressed interest in investing in British Columbia including, but not limited to, Shell Canada and partners PetroChina, Korea Gas and Mitsubishi; Chevron Canada with partner Apache Corporation; the BG Group; Progress Energy with partners PETRONAS and JAPEX and the BC LNG export Cooperative with Haisla Nation.

The EOI process was initiated in late February, following conversations with First Nations. The EOI was officially closed on March 18, 2013.

libtard Apr 13, 2013 5:39 AM

I've seen a ton of commercials promoting tankers carrying oil/gas from our coast

With all these proposals in the pipeline there is some serious economic benefits for BC

We need to get the public on board so it can move past the proposal stage

Stingray2004 Oct 6, 2013 6:19 PM

Major international LNG giant Petronas of Malaysia has previously purchased Progress Energy for ~$6 billion, which has major natural gas upstream assets in NE BC's Montney basin. Petronas has also entered into a contractual arrangement with TransCanada Pipelines for a $6 billion natural gas pipeline from NE BC to Prince Rupert, the location of Petronas' proposed LNG facility.

Currently, the LNG facility and pipeline are in the BC Environmental Assessment Office stage with final certification expected by September, 2014. The Front End Engineering and Design has also been previously awarded to Bechtel/Samsung.

Ergo, a Final Investment Decision (FID) was expected in September, 2014 but after today's announcement that seems to be just a future formality. Today, Petronas announced that it will definitely be proceeding with the LNG facility (plus pipeline and upstream natural gas development) with a gargantuan capital cost of $36 billion!


Harper Arrives at APEC Summit Greeted by $36-Billion Investment Pledge From Petronas

NUSA DUA, INDONESIA — The Canadian Press
Published Sunday, Oct. 06 2013, 9:32 AM EDT
Last updated Sunday, Oct. 06 2013, 11:12 AM EDT

Prime Minister Stephen Harper arrived in Bali for an Asia-Pacific leaders’ summit Sunday bearing what could be called a $36-billion vote of confidence from Malaysia’s state-owned oil and gas company.

Malaysian Prime Minister Mohd Najib sprung the “gargantuan” investment figure during a joint availability with Harper in Putrajaya, saying Malaysia’s state-owned oil and gas company Petronas has committed to construction of a liquid natural gas plant in British Columbia and the pipeline to feed it.

“I’m told that this is the largest direct foreign investment in Canada by any country,” Najib said, flanked by Harper following a formal welcoming ceremony at a sprawling new government precinct outside the Malaysian capital of Kuala Lumpur.

Najib called it a “significant landmark decision” by Petronas, which last year spent more than $5 billion buying Alberta-based Progress Energy Inc.

libtard Oct 6, 2013 6:23 PM

First Nations group is appealing to the UN to block the pipeline

Stingray2004 Oct 6, 2013 6:42 PM


Originally Posted by libtard (Post 6292798)
First Nations group is appealing to the UN to block the pipeline

That's in reference to Enbridge's Northern Gateway pipeline to carry bitumen to the west coast. A completely different animal.

OTOH, FN's are not only onside with LNG and accompanying natural gas pipelines but they also either have minor equity stakes or financial agreements with the pipeline operators as well as the LNG facility operators. BTW, at least 4 natural gas pipelines from NE BC are planned to proposed west coast LNG facilities by Chevron, Shell, BG Group, and ExxonMobil.

Canadian Mind Oct 6, 2013 7:43 PM


Originally Posted by Stingray2004 (Post 6292791)
Major international LNG giant Petronas of Malaysia has previously purchased Progress Energy for ~$6 billion, which has major natural gas upstream assets in NE BC's Montney basin. Petronas has also entered into a contractual arrangement with TransCanada Pipelines for a $6 billion natural gas pipeline from NE BC to Prince Rupert, the location of Petronas' proposed LNG facility.

Currently, the LNG facility and pipeline are in the BC Environmental Assessment Office stage with final certification expected by September, 2014. The Front End Engineering and Design has also been previously awarded to Bechtel/Samsung.

Ergo, a Final Investment Decision (FID) was expected in September, 2014 but after today's announcement that seems to be just a future formality. Today, Petronas announced that it will definitely be proceeding with the LNG facility (plus pipeline and upstream natural gas development) with a gargantuan capital cost of $36 billion!

Well that's big news. Looks like the 35 billion naval development plan just paid for itself.

craneSpotter Nov 10, 2013 3:44 PM


Originally Posted by Stingray2004 (Post 6292791)
Ergo, a Final Investment Decision (FID) was expected in September, 2014 but after today's announcement that seems to be just a future formality. Today, Petronas announced that it will definitely be proceeding with the LNG facility (plus pipeline and upstream natural gas development) with a gargantuan capital cost of $36 billion!

To further support that - Petronas just bought MORE Montney assets from Talisman for 1.4 Billion to help secure a long term supply of gas.

Talisman Sells Montney Assets to Petronas for $1.4 Billion (4)

BloombergBusinessweek - Nov 8, 2013


Talisman Energy Inc. (TLM), the Canadian oil and natural gas producer being targeted by investor Carl Icahn, agreed to sell part of its Montney acreage to Malaysia’s Petroliam Nasional Bhd for C$1.5 billion ($1.4 billion).

The transaction involves about 127,000 net acres, representing 75 percent of Talisman’s Montney shale holdings in the Farrell Creek and Cypress areas of British Columbia, the Calgary-based company said today in a statement. It includes C$800 million in drilling costs. Talisman rose 1.6 percent to C$12.42 at the close in Toronto.

craneSpotter Nov 13, 2013 5:03 PM

China’s CNOOC gets exclusive rights to LNG lands in B.C.

Financial Post - Nov 12, 2013


China’s CNOOC Ltd. has plunked down $12-million with the British Columbia government to secure lands for a potential liquefied natural gas plant on Canada’s West Coast, in the latest move by a state-owned energy company doubling down on the province’s gas resources.

CNOOC, which last year bought Calgary-based Nexen Inc. in China’s largest-ever overseas acquisition, has teamed up with Japan’s Inpex Corp. and JGC Corp. to build an export terminal at Grassy Point, a narrow peninsula about 30 kilometres north of Prince Rupert, B.C., the province said Tuesday.

CNOOC would own 60% of Aurora LNG, with Inpex and JGC owning a combined 40%, Nexen CEO Kevin Reinhart said at a press conference in Vancouver announcing the deal. The arrangement gives Nexen exclusive rights to pursue long-term access to the Crown land, the company said in statement.

craneSpotter Nov 27, 2013 2:21 PM

China's Sinopec in talks to invest in Kitimat LNG project in B.C.: source

Globe and Mail, Nov 27, 2013


Sinopec, China’s biggest oil refiner, is in talks with Apache Corp to buy a stake in the Kitimat LNG export project on Canada’s Pacific coast, according to an industry executive with direct knowledge of the matter...

...The $15-billion project, located in northern British Columbia, is expected to begin shipping gas to Asia by 2017.

craneSpotter Dec 3, 2013 6:51 PM

More activity in the burgeoning west coast LNG industry:

Horn River, Cordova, Liard basins to supply Aurora LNG plant: NEB export filing

BIV December 2, 2013


Natural gas resources in the Horn River and Cordova Embayment of northeast British Columbia are expected to feed the planned Aurora LNG facility, a National Energy Board filing noted.

On Friday, Nexen Energy ULC on behalf of Aurora Liquefied Natural Gas Ltd., jointly owned by CNOOC Ltd.-held Nexen, INPEX Corporation and JGC Exploration Ltd., applied to the NEB seeking an export licence for a term of 25 years to send out LNG.

The B.C. government recently announced a land deal with Nexen for the Aurora LNG plant to be located at Grassy Point in the Prince Rupert area.

Stingray2004 Jan 14, 2014 5:49 AM

Chevron/Apache today awarded a tendered engineering, procurement and construction (EPC) contract to Fluor/JGC reportedly worth $9.4 billion US for Kitimat LNG. I still haven't determined whether that figure is for one or two liquefaction trains. The FEED contract was previously awarded in 2011.

FID was always expected within 12 - 18 months from now, but with the awarding of the EPC contract today, may be even sooner.


Hong Kong Standard
January 14, 2014

Japan-US Venture To Build Canadian Gas Plant

Japanese engineering giant JGC Corp. said Tuesday it has won a contract to help build a Canadian liquefied natural gas plant in a deal reportedly worth US$9.4 billion.

JGC said its joint venture with US-based Fluor Corp. was awarded the tender by Chevron Canada to design and build the Kitimat LNG plant in the western province of British Columbia.

Chevron and Apache Canada each hold a 50 percent interest in the proposed plant, which will have an annual capacity of 11 million tonnes of LNG, according to a JGC statement.

Neither JGC nor Fluor announced financial details of the contract or when construction would begin.

Japan's leading Nikkei business daily reported that the site would process natural gas into its liquefied form before being shipped to Japan and other markets. It added that the one trillion yen ($9.43 billion) plant would be Canada's first major LNG production facility.

craneSpotter Feb 13, 2014 12:02 AM

Some more activity:

Rio Tinto to sell or lease Kitimat port to LNG Canada

CBC News Feb 12, 2014


More pieces are falling into place for the LNG Canada natural gas liquefaction plant and export terminal in Kitimat, B.C.

On Wednesday, Rio Tinto PLC said it had reached an option agreement to sell or lease its wharf and associated land to LNG Canada.

Rio Tinto said the terms of the deal were confidential.

The agreement gives LNG Canada, a joint venture of Shell Canada Energy, China's Phoenix Energy Holdings Ltd., Korea's Kogas Canada LNG Ltd. and Diamond LNG Canada Ltd., an affiliate of Mitsubishi Corp., access to the deep water port in Kitimat...

...Rio Tinto has been selling assets to reduce its debt since acquiring Canada's Alcan aluminum assets in 2007 for US$38.1 billion. It is modernizing the aluminum plant in Kitimat and plans to share use of the deep water port with LNG Canada.

craneSpotter Feb 13, 2014 12:07 AM


Petronas courts Indian Oil for B.C. LNG investment

Globe and Mail, February 11, 2014


Malaysia’s Petronas is narrowing its search for new partners to help construct a multibillion-dollar liquefied natural gas operation in British Columbia, with India topping the shortlist.

State-owned Petronas, which leads the Pacific NorthWest LNG Ltd. project to build an export terminal at Prince Rupert in northwestern British Columbia, signed up Japan Petroleum Exploration and Petroleum Brunei as B.C. LNG partners last year....

...Pacific NorthWest estimates that almost $36-billion will need to be spent in order to make its export plan a reality in early 2019. The massive budget includes $6.7-billion in pipeline projects, nearly $11-billion for an export plant at Lelu Island near Prince Rupert, Petronas’s $5.2-billion acquisition of Progress and more than $2-billion annually from 2013 through 2018 on northeast B.C. natural gas development projects.

Pacific NorthWest is aiming to make its final investment decision by the end of 2014.
Also something to consider about these LNG projects - Canada is considered a safe and stable long-term bet ;)

TD Securities Inc. analyst Menno Hulshof said in a recent research note that state-owned energy firms may have different goals in their decision-making process on B.C. LNG projects than the private sector. “Decisions made by the national oil companies could in part be driven by ‘security of supply’ considerations,” he said.

craneSpotter Feb 25, 2014 8:37 PM

More action on the BC LNG front, with new Indian/Asian partners for Petronas.

Petronas to sell 25% stake in its Canadian gas assets

SINGAPORE — Reuters - Feb. 25 2014


Malaysia’s Petronas has agreed to sell a 25 per cent stake in its Canadian shale gas assets to an Indian company and an Asian gas buyer, the state firm’s president and chief executive, Shamsul Azhar Abbas, said on Tuesday.

Petronas is looking to share some of the costs of bringing liquefied natural gas (LNG) from North America to energy-hungry Asia. Indian state oil and gas companies want to expand their portfolios of exploration and producing assets.

craneSpotter Feb 27, 2014 7:19 PM

Well, it sounds like billions are starting to flow into LNG (land development, front-end engineering & design) this year?

As Apache seeks partners for Kitimat LNG project, B.C. minister pegs threshold at $1-billion

VICTORIA and VANCOUVER — The Globe and Mail - Feb. 26 2014


Faced with the prospects of high front-end costs – $1-billion this year alone – Apache’s CEO said Wednesday the company needs to “right-size” and reduce its stake in Kitimat LNG by hunting for new partners.

Rich Coleman, Natural Gas Development minister, said in an interview Wednesday he’s not concerned that the high cost of exploring LNG in B.C. will scare off investors.

“Each one of these [proponents] expects to spend over $1-billion to get to final investment decision. That’s amazing.”....

...Mr. Coleman added that the preparation for the Kitimat LNG project has been particularly intensive. “They have already in their case knocked off the top of a mountain, built an industrial road 19 kilometres into their site,” he noted. There are only a handful of engineering firms capable of delivering the planning required...

...During a webcast, Mr. Farris said Apache would need to contribute $1-billion as its share of $2-billion in estimated costs in 2014 related to front-end engineering and design for an LNG export terminal at Kitimat in northwestern British Columbia.

But he reiterated comments that he made earlier this month, saying that Apache is rebalancing its energy portfolio and it would be too costly for the company to bear the massive development bills under the current structure of only two co-owners.

“We have always said that we would like to sell an equity position,” Apache spokesman Bill Mintz said in an interview from Houston. “We will continue to maintain a material interest in the project. We desire to reduce our exposure in 2014.”

craneSpotter Feb 27, 2014 7:28 PM

Pacific Trail Pipelines Limited Partnership sign $200 million commercial agreement with 15 First Nations regarding the pipeline component of the Kitimat LNG Project


Pacific Trail Pipelines Limited Partnership (“PTP LP”), the First Nations (PTP) Group Limited Partnership (“FNLP”), and the Province of British Columbia (“Province”) today announced a revised benefits agreement for the proposed 463-kilometre Pacific Trail Pipeline Project (“PTP Project”) that will ensure First Nations receive immediate and long-term benefits from the PTP Project.

Link - http://mediacenter.kitimatlngfacilit..._releases.aspx

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