Japan's Mitsubishi Corporation made a final investment decision (FID) on a joint LNG venture project in Kitimat, British Columbia, Mitsubishi said on Tuesday.
The Japanese company confirmed the project's other partners in the joint venture project include Shell, Petronas, PetroChina and KOGAS.
Mitsubishi said its role will be to provide customers in Asia, mainly in Japan, with a new stable supply source of LNG based on abundant natural gas in Canada via the new LNG plant in British Columbia.
The project will have a combined capacity of 14 million tons per annum and two processing units, with operations slated to commence in the mid-2020s.
The total estimated development cost of the plant is about $14 billion, with Mitsubishi being responsible for a working interest of 15 percent of the total cost, and an offtake of over 2.1 million tons of LNG annually.
Mitsubishi has been in the LNG business for about 50 years, with experience developing business in Southeast Asia, Australia, Russia, the U.S. and the Middle East.
"The launch of this project not only allows the company to help expand employment opportunities and economic development in Western Canada, but it is also an opportunity to help make inroads in the development of the LNG business, which has low environmental impact, while at the same time helping to provide a stable supply of energy," Mitsubishi said in a statement.
LNG Canada is a joint venture comprised of Royal Dutch Shell, through its affiliate Shell Canada Energy (40 percent), Petronas, through its wholly-owned entity, North Montney LNG Limited Partnership (25 percent), PetroChina, through its subsidiary PetroChina Canada Ltd. (15 percent), Mitsubishi Corporation, through its subsidiary Diamond LNG Canada Ltd. (15 percent), and Korea Gas Corporation, through its wholly-owned subsidiary Kogas Canada LNG Ltd (5 percent).
By Murat Temizer