Previously-delayed $40-billion Kitimat LNG project looking likely to proceed
Posted May 15, 2018 5:45 pm.
This article is more than 5 years old.
KITIMAT (NEWS 1130) – A previously delayed $40-billion LNG project in Kitimat now looks more likely to go ahead.
But there’s no final investment decision just yet from the parties involved.
The chief executive of LNG Canada, Andy Kalitz, is reaffirming his commitment that construction on the project will start this year — but he doesn’t have the final say. He made the comments at an LNG conference in Vancouver.
Ultimately, it will be up to the companies which comprise the joint venture which will make that final call on whether to go ahead.
Still, Kalitz’s comments are an encouraging development, says Energy Minister Michelle Mungall.
“LNG Canada is very optimistic that their investors are going to have a positive final investment decision in the near future,” says Mungall. “When that is, exactly, I couldn’t say. But they’re feeling positive, we’re feeling positive. As you know, the NDP has always been supportive of the industry, but we’ve always had our four conditions, as well, and one of those is meeting our climate targets.”
Kitimat Mayor Phil Germuth also welcomes the latest comments about the project proceeding, and says he’s optimistic the export facility will be built.
“There’s no doubt the optimism…is higher than it ever has been,” says Germuth. “Everybody’s seeming to think that yes they will make a final investment decision, a positive final investment decision later this year, and of course as Kitimat we’re extremely excited that we’re getting closer and closer to that opportunity.
LNG Canada tells us it is preparing a document for its joint venture members to review before they make any final investment decision.
Critics have suggested the provincial government will struggle to meet its emission reduction targets if this or any other LNG project proceeds.
