LONDON (Alliance News) - Oil giant Royal Dutch Shell PLC on Tuesday said its affiliate Shell Canada Energy has taken a final investment decision on LNG Canada, a liquified natural gas project in Kitimat, Canada.
Shell said its 40% share in the project's capital costs is within its current capital investment guidance, which stands in the range of USD25 billion and USD30 billion per year.
The company said the other LNG Canada joint venture partners have also taken a final investment decision. Construction, therefore, will start immediately with first liquified natural gas estimated "before the middle of the next decade".
Shell said it expects to export 14 million tonnes of liquified natural gas per annum from two processing units of the project, with the potential to expand to four processing units in the future.
The export facility will be constructed using proven industry technology on a large, partially developed industrial site with an existing deep-water port, roads, rail and power supplies, the company said.
"We believe liquified natural gas project is the right project, in the right place, at the right time," said Shell Chief Executive Ben van Beurden.
"Liquified natural gas project is expected to deliver Shell an integrated internal rate of return of some 13%, while the cash flow it generates is expected to be significant, long life and resilient," added Ben van Beurden.
