LNG Canada has revealed it is having talks with local government on the electrification of Canada’s first liquified natural gas (LNG) export terminal.
The CEO of LNG Canada, Jason Klein, said on Thursday that talks with the local government of British Colombia have been “encouraging.” All relevant parties, Klein continued, agree that electrification will benefit not just the stakeholders but the region itself.
During a mid-year update, Klein said: “LNG Canada has identified potential opportunities to further advance electrification at our export facility in Kitimat with a Phase 2 expansion, aligned with an availability of sufficient reliable power.”
A joint venture between Shell, Mitsubishi, Petronas and others, the upcoming LNG terminal will produce 14 million tonnes per annum (mtpa) in its initial first phase. The prospective second phase would double this output tally to 28mtpa.
Klein stated that the project’s first phase is “close to 85% complete” and that LNG cargo should be produced by “mid-decade”. The facility is also located close to a deepwater harbour that remains ice-free year-round. Offshore Technology’s parent company, GlobalData, identified LNG Canada’s terminal as one of the five largest upcoming LNG terminals in the world.
The company revealed these plans in January; however, at the time the state of British Columbia lacked the power capacity to accommodate a fully electrified second phase. As such, LNG Canada said it will build the second phase with gas-powered turbines and switch to electric power as soon as the capacity becomes available.
In the update, Klein called on the local government to expedite the electrical capacity of the region in order to push through with the plans, saying: “We strongly encourage BC Hydro and the provincial government to find the pathways needed to unlock the potential for additional electric power to a broad base of local stakeholders and initiatives, including LNG Canada’s Phase 2.”
