The Canadian government has approved a $40 billion investment to support a major liquefied natural gas (LNG) complex that will unleash the country's gas potential to start gas exports to global markets, the government announced Tuesday.
The project represents the largest single private sector investment in Canada's history, in which the federal government will invest $275 million to support the LNG Canada project located in the country's western region in Kitimat, British Columbia near the Pacific Ocean.
Canada's Finance Minister said $220 million of the investment will fund highly energy-efficient gas turbines for LNG Canada, minimizing both greenhouse gas emissions and fuel use, according to a statement by the federal institution; Innovation, Science and Economic Development.
The remaining $55 million will support and service existing and increased traffic in the region, it said, adding that the project is expected to create over 10,000 jobs, contribute to government revenues, and enable construction for local businesses.
"Building on a 60% increase in foreign direct investment last year, our government has created the economic conditions to attract the largest private sector investment in Canadian history," Navdeep Bains, minister of Innovation, Science and Economic Development, said in the statement.
The Minister of Natural Resources, Amarjeet Sohi, said the Canadian government is helping create a "clean, sustainable and competitive LNG export sector."
After receiving regulatory approvals in 2015, project construction started in October 2018, with a target in service date for the middle of the next decade.
The project includes a 670-kilometer-long pipeline from the adjacent energy-rich province Alberta that will run through British Columbia to a liquefaction facility near the Pacific Ocean. The LNG primarily targets Asian markets.
At its full capacity, the terminal will convert and export 26 million tons of LNG per year, which is around 20% of overall gas production in Canada, according to the statement.
By Ovunc Kutlu