VICTORIA — Premier David Eby expressed strong optimism this week regarding the likelihood that Shell and its partners will approve a multi-billion dollar expansion of LNG Canada in Kitimat before the end of the year.
“When — and I’m saying when, I’m very hopeful here — when LNG Canada reaches final investment decision before the end of the year, it will be the largest private-sector investment in Canadian history,” Eby told reporters on Thursday.
While the premier did insert a few cautious “ifs” later in the news conference, he highlighted LNG Canada's recent allocation of substantial financial resources to move toward the final investment decision.
“To us, the decision to release those hundreds of millions of dollars into moving toward final investment decision is a major vote of confidence in the project,” said Eby. “We think that’s worth celebrating.”
Federal Energy Minister Tim Hodgson, who joined Eby in Vancouver, echoed this sentiment. Hodgson noted that the pre-final investment decision was made by Shell and its four partners in LNG Canada.
“When you see countries — Japan, Korea, Malaysia, Shell operating all over the world, and China — all saying, we can put our money anywhere and we want to put it in this country, that is a huge show of support,” Hodgson said.
Hodgson and Eby announced an “enhanced co-operation agreement to advance LNG Canada Phase 2,” which includes commitments to work with Indigenous nations, promote competitiveness, ensure jobs and training, and close the deal on the final investment decision.
LNG Canada CEO Chris Cooper shed light on the assurances Shell and partners are seeking before signing off. “There’s some supply chain pieces that we just need to finish with contractors. There are labour force things with those contractors. There are some final pieces with the government and with First Nations,” Cooper said.
He also mentioned a pending agreement with the federal government on carbon capture and competitiveness. “What do international investors really want? They want clarity on policy, they want clarity on regulatory, and they want help to be competitive. It’s a very, very tough world out there to make LNG competitive,” Cooper added.
“Most LNG projects don’t get to final investment decision. We had about 15 try in 2018, and only one went ahead back then.” That one was LNG Canada Phase 1, which is not yet operational.
Cooper also addressed health concerns related to flaring at the Kitimat facility. “We are flaring more. That’s a pretty normal thing when you start an LNG plant up,” he acknowledged.
