Shell Canada Energy announced that Petronas, through its fully affiliated North Montney LNG will take an equity position in LNG Canada, located in Kitimat, British Columbia, “subject to regulatory approvals and closing conditions.”
As a result of this transaction, if approved and upon closing, ownership interests in LNG Canada would be Shell Canada Energy (Shell) 40%; North Montney LNG (Petronas) 25%; PetroChina Kitimat LNG (PetroChina) 15%; Diamond LNG Canada (Mitsubishi) 15%; and Kogas 5%.
Current LNG Canada project’s partners are Shell Canada Energy (Shell) 50%; PetroChina 20%; Mitsubishi 15%; and Kogas 15%, according to the Global LNG Info’s Database .
LNG Canada recently selected the joint venture of JGC and Fluor as the Engineering, Procurement and Construction (EPC) contractor for the project “and is currently finalising materials in preparation for a final investment decision (FID) by joint venture participants,” Shell said in its announcement.
Last month, Nikkei reported that JGC and Fluor have won orders to design and build the LNG Canada project for an estimated $14 billion. However, JGC and Mitsubishi spokesmen in Tokyo had declined to comment on the report.
The project’s leader (Shell) has also reminded that the transaction with Petronas “does not amount to an FID which remains pending” as “the timing and outcome of an FID will be decided by joint venture participants based on global energy markets, and the overall competitiveness and affordability of the project.”
Shell and its partners have twice delayed a FID on the project amid a global supply glut; however in recent months, Shell has indicated the window for competitive projects may be reopening, saying that global LNG demand exceeded expectations last year and that the market may again face a supply shortage by the mid-2020s.
The Malaysian state-run Petronas’ participation in LNG Canada follows its decision in July to cancel its planned US$28 billion Pacific NorthWest LNG project because of depressed fuel prices and staunch opposition from environmental and indigenous groups.

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