CALGARY — Partners in LNG Canada could reach a final investment decision (FID) on the liquefied natural gas export facility’s Phase 2 expansion as early as next month, according to sources close to the matter.Reuters reports that the expansion would add another 14 million metric tonnes per annum (Mtpa) of LNG export capacity to the Kitimat, BC, facility, doubling its total capacity to 28 Mtpa.The proposal comes as Canada’s LNG customers, especially in Asian markets, are placing greater emphasis on securing and diversifying their energy supplies amid the Iran conflict and uncertainty surrounding oil tanker traffic through the Strait of Hormuz.LNG Canada — which is led by Shell, along with Malaysia’s Petronas, PetroChina, Mitsubishi Corp. and Korea Gas Corp. — is Canada’s first large-scale LNG export terminal and has the capacity to export just under 1.2 million metric tonnes of LNG per month.“We continue to work with the venture partners to explore pathways to a possible Phase 2 expansion. Any decision will consider factors such as competitiveness and affordability, government support and stakeholder needs,” Shell told Reuters in a statement..PetroChina considers selling stake in LNG Canada to help fund expansion.The project’s $40-billion first phase consists of two processing trains capable of exporting 14 million metric tonnes of LNG per year.“Any potential final investment decision remains subject to LNG Canada’s Joint Venture Participants independently satisfying their commercial, fiscal, regulatory and governance requirements,” LNG Canada said.“We hope to make an investment decision before the end of the year.”Earlier this year, the facility shipped its first cargo and became a cornerstone of Canada’s efforts to become a major global LNG exporter.Also in July, LNG Canada signed a landmark equity option agreement with MNT Investments LP, a partnership representing the economic development organizations of the Gitga'at, Gitxaała, Haisla, Kitselas and Kitsumkalum First Nations.The agreement gives the group the option to invest up to $1 billion in the Phase 2 expansion, making it one of the largest indigenous investment opportunities in Canadian energy infrastructure history.At the time of the announcement, Gitxaała Nation Chief Councillor Linda Innes said the agreement was “far more than a commercial transaction,” adding that it established First Nations as equity owners and partners rather than simply communities affected by development.
