LONDON, June 4 (Reuters) - Shell-led LNG
Canada, the country's first natural gas export terminal, could
deliver its first cargo earlier than previously planned, an
executive at the British company said.
The C$40 billion ($29 billion) liquefied natural gas (LNG)
project in British Columbia is in the final stages of
construction ahead of its planned startup in mid-2025, Shell's
head of integrated gas and upstream Zoe Yujnovich told Reuters
in an interview.
The giant project is central to Shell's ambitions to grow
its gas liquefaction capacity by 25-30% between 2022 and 2030 to
around 40 million metric tons per year (mtpa).
"It's always a balance between when we may get the first
cargo, which indeed could well be earlier, versus what I'm
really looking for that is a sustainable drumbeat of every cargo
that we get coming routinely and consistently," Yujnovich said.
"You can get slightly earlier cargoes but you may need to
then do additional work that comes after that," she added,
without giving more details.
Shell is the world's top trader of LNG, which it says will
play a central role for decades even as economies seek to phase
out their reliance on fossil fuels.
LNG Canada, which will produce 14 mtpa at its first phase of
development, is a joint venture between Shell, PetroChina
, Malaysia's Petronas, Japan's Mitsubishi Corporation ( MSBHF )
and South Korea's Kogas.
The Kitimat terminal will process up to 2 billion cubic feet
per day (bcfd), representing 11% of current Canadian gas output
and making it a major source of revenue for the provincial and
federal governments.
The project partners are working on the final aspects of the
project such as the installation of units after the completion
of TC Energy's ( TRP ) Coastal GasLink pipeline into the
terminal, Yujnovitch said.
A decision on whether to go ahead with the second phase of
the project is expected towards the end of this year, as the
partners assess the costs of the expansion, including the impact
of proposed government rules on carbon emissions and power
generation, she said.
($1 = 1.3622 Canadian dollars)