Three liquefied natural gas (LNG) projects on Canada’s West Coast are continuing to make progress. The largest, LNG Canada, is under construction while the other two, Cedar LNG and Woodfibre LNG, are progressing through the regulatory approvals process.
LNG Canada may consider second project phase
In March 2022, a large piece of infrastructure, the inlet facilities module, arrived at the LNG Canada project site in Kitimat, B.C. With delivery of this equipment, construction at the site is now 50 per cent complete.
Meanwhile, Shell PLC – the lead partner in the LNG Canada joint venture project – says it is studying the feasibility of moving forward with design and construction of the project’s second phase in order to supply larger volumes of LNG to growing markets in Asia. This would in turn free up LNG from other global suppliers that could then be shipped to markets in Europe. Many European countries are seeking to discontinue using natural gas from Russia, in light of the current conflict in Ukraine. (Russia supplies about 40 per cent of the natural gas consumed in the EU).
Read more: LNG Canada construction achieves milestone
Phase 2 of the LNG Canada facility would potentially use hydroelectricity from BC Hydro for cooling natural gas to LNG. In this liquid form, natural gas can be transported to overseas markets. Using renewable hydroelectricity would also significantly reduce emissions from the facility.
Cedar LNG submits environmental assessment application
LNG Canada site is located within the traditional territory of the Haisla Nation. The Haisla have been very engaged and involved from the project’s beginning. The Nation supports the LNG Canada project and has embarked on designing its own fully Indigenous-owned LNG project, Cedar LNG.
This proposed project is a floating LNG facility also located near Kitimat. The facility is designed to produce industry-leading low-carbon LNG for overseas markets. By using an innovative design philosophy that fits the facility into the local environment, Cedar LNG will minimize the impact to the local environment while creating prosperity for both the Haisla Nation and the region.
In February 2022, Cedar LNG project management submitted its application for an Environmental Assessment Certificate to the B.C. Environmental Assessment Office. Decisions from the provincial and federal governments on approving the environmental assessment is expected in the last quarter of 2022. A final investment decision, which will determine whether the project will proceed to construction, will be made in 2023.
Read more: Canada – the world’s best LNG
Woodfibre LNG approves 2022 spending
In November 2021, Woodfibre LNG signed an engineering, procurement, fabrication, and construction (EPFC) contract with McDermott International. The EPFC contract is an important step in advancing detailed engineering and construction work in advance of Woodfibre LNG issuing a notice to proceed. In March 2022, Woodfibre approved a budget of US $500 million for the EPFC contract, including CDN $25 million to be spent in 2022 on pre-construction tasks such as site remediation, the closure of an old landfull, and construction of a passenger dock replacement.
Located at Squamish, B.C., Woodfibre will be among the world’s lowest-emitting LNG facilities. The facility will use hydroelectricity for its operations and other advanced technologies that will significantly reduce emissions. By shipping LNG to replace coal-fired electricity generation in Asia, Woodfibre can reduce net global emissions by 3.5 million tonnes of carbon dioxide annually – equivalent to five per cent of B.C.’s current total annual emissions.