RDSA.L Share News (RDSA)

(Sharecast News) - Shell on Tuesday said it had given the green light to proceed with a major liquified natural gas (LNG) project in Canada where it has a a 40% working interest.Construction on the LNG Canada project will start immediately with first deliveries expected before the middle of the next decade, the company said, adding that it forecast an integrated internal rate of return of around 13%, with "significant, long life and resilient" cash flow.Shell said LNG Canada will initially export LNG from two processing units or "trains" totaling 14m tonnes a year, with the potential to expand to four trains in the future."It is advantaged by access to abundant, low-cost natural gas from British Columbia's vast resources and the relatively short shipping distance to North Asia, which is about 50% shorter than from the US Gulf of Mexico and avoids the Panama Canal," Shell said."We believe LNG Canada is the right project, in the right place, at the right time," said Shell chief executive Ben van Beurden."Supplying natural gas over the coming decades will be critical as the world transitions to a lower carbon energy system. Global LNG demand is expected to double by 2035 compared with today, with much of this growth coming from Asia where gas displaces coal. LNG Canada is well positioned to help Shell meet the growing needs of customers at a time when we see an LNG supply shortage in our outlook.LNG Canada is a joint venture comprised of Shell Canada Energy (40%), PETRONAS, (25%); PetroChina (15%); Mitsubishi Corporation (15%); and Korea Gas Corporation (5%).