Companies Behind LNG Canada Formalize Joint Venture; Milestone f

Companies Behind LNG Canada Formalize Joint Venture; Milestone for Proposed
Tokyo, May 1, 2014 - (JCN Newswire) -  Shell Canada Energy (Shell), PetroChina
Corporation, Korea Gas Corporation (KOGAS) and Mitsubishi Corporation have
today announced, in the presence of Honourable Christy Clark, Premier of
British Columbia and Honourable Rich Coleman, Minister of Natural Gas
Development and Minister Responsible for Housing and Deputy Premier, the
signing of a joint venture agreement to develop a proposed liquefied natural
gas (LNG) export project - LNG Canada. The new operating entity, LNG Canada
Development Inc., is incorporated and registered under the federal laws of
Canada. The proposed project, to be located in Kitimat, British Columbia, is
subject to regulatory approvals and a Final Investment Decision by the joint
LNG Canada continues to bring together the four companies' extensive
development experience, technical depth, financial strength and access to
markets required to be a leading LNG developer in Canada. The signing of the
joint venture agreement is an important milestone for the project as it
formalizes the joint venture and creates an operating entity that enables LNG
Canada to progress the project and enter into agreements with potential
suppliers and contractors. The project's corporate offices will continue
to be located in Vancouver, British Columbia and Calgary, Alberta, with the
project office based in Kitimat, British Columbia. 
"While we are in the early evaluation process and a decision to build the
project is still a while away, this agreement reinforces our commitment to
developing an LNG facility in British Columbia and allows us to proceed with
the next steps in our project assessment," said Andy Calitz, CEO LNG
Canada. "We will need to continue to work closely with the provincial and
federal government to ensure that the project is economically viable, as well
as working closely with First Nations, the local communities, and regulatory
agencies, and move forward on a number of commercial agreements and contracts.
We remain cautiously enthusiastic about the potential opportunity in B.C. and
look forward to exploring it further." 
The demand for natural gas, the cleanest burning fossil fuel, remains high in
Asia and other global markets. LNG Canada would deliver a project that offers a
new source of competitively priced LNG to global markets, while providing
benefits to Canada, British Columbia and its coastal region. 
"These four companies are working together to realize the immense
potential of B.C.'s LNG - an industry that could create up to 100,000 jobs
overall in our province by exporting clean, reliable energy to the growing
economies across the Pacific," said Premier Christy Clark.
"There's more work to do, but momentum is clearly on our side." 
While there is considerable work that still needs to be done prior to the four
companies making a Final Investment Decision, the initial technical work has
now been completed, land has been acquired, the Project Description has been
submitted and the Environmental Assessment is currently underway. 
"Today is an important step forward for LNG Canada and we are pleased to
join PetroChina, KOGAS and Mitsubishi - strong LNG companies in their own right
- to move this project forward together. LNG Canada must compete across a
portfolio of global options but we remain optimistic that with the continued
co-operation of all interested parties LNG Canada can offer a valuable global
market for Canadian natural gas," commented Jorge Santos Silva, Executive
Vice President Shell Upstream Americas Commercial, New Business Development and
Integrated Gas. 
"It is a great pleasure and honour to work closely with Shell, KOGAS and
Mitsubishi Corporation. This milestone signifies our strong alignment and
though we come from different corners of the world, we are confident that we
will continue to step forward together" said Bi Jingshuang, Director -
Legal Department of China National Oil and Gas Exploration and Development
Corporation (CNODC, who represents PetroChina.) 
"LNG Canada, if realized, has the potential to play an important role in
meeting the energy needs of Japan and other countries that rely heavily on LNG,
and we are pleased with this achievement," stated Hiroki Haba, Vice
President, Natural Gas Business Division, Mitsubishi Corporation.
"Together with the significant investments we have been making in the
upstream sectors in western Canada, Mitsubishi Corporation remains fully
committed to making the project a success." 
"The project provides a great chance to enhance energy supply security
for countries, including Korea, which are always in need of stable energy
sources. LNG Canada is committed to the development of a sustainable project
providing benefits to local and global communities alike," added Jongkook
Lim, Vice President, LNG Business Department, Korea Gas Corporation. 
Upon signing the Joint Venture Agreement, the joint venture partners'
respective interests in the project have been updated, with Shell now holding
50%, PetroChina 20% and each of KOGAS and Mitsubishi Corporation holding 15%. 
About LNG Canada 
The proposed LNG Canada project includes the design, construction and
operation of a gas liquefaction plant and facilities for the storage and export
of liquefied natural gas (LNG), including marine facilities. LNG Canada will
initially consist of two LNG processing units referred to as
"trains," each with the capacity to produce six million tonnes of LNG
annually, with an option to expand the project in the future to four trains. 
LNG Canada's vision is to work collaboratively with the local community,
First Nations and stakeholders, to deliver a project that is safe, reliable and
reflective of community interests. 
Project milestones to date: 
2011 - The Joint Venture was assembled. 
2012 - LNG Canada selected TransCanada to own, operate and construct the
2013 - LNG Canada also had its export license approved by the NEB and filed
its Project Description. 
2014 - LNG Canada secured its preferred site in Kitimat. 
About the Joint Venture Companies 
Shell Canada Energy is one of the largest upstream divisions of Royal Dutch
Shell plc ("Shell"), which is a global leader in LNG and helped
pioneer the liquefied natural gas (LNG) sector, providing the technology for
the world's first commercial liquefaction plant in 1964. Shell currently
has ten LNG projects in operation with approximately 26.1 million tonnes per
annum (mtpa) operational LNG capacity, in nine countries, and two projects with
an additional 7.5 mtpa under construction. Shell was a partner in the
first-ever purpose built LNG carrier and has been delivering LNG safely for
nearly half a century. Today, Shell is one of the largest LNG vessel operators
in the world, with interests in around a quarter of the LNG vessels in
operation. Shell has key positions in North America unconventional gas,
including amongst others the Montney shale development in Canada. 
Phoenix Energy Holdings Limited (an affiliate of Petro-China Investment (Hong
Kong) Limited) ("PetroChina") is China's largest oil and gas
producer and supplier, as well as one of the world's major oilfield
service providers and a contractor in engineering construction. PetroChina
officially launched three LNG projects in June 2004, two of which started
operations in the first half of 2011. 
Kogas Canada LNG Ltd. (an affiliate of Korea Gas Corporation)
("KOGAS") is the world's largest LNG importer. As the
nation's sole LNG provider, KOGAS currently operates three LNG terminals
and a nationwide pipeline network, supplying natural gas from around the world
to power generation plants, gas-utility companies and city gas companies
throughout the country. KOGAS has also diversified into LNG swapping and
trading, and LNG terminal construction, operations and management. 
About Mitsubishi Corporation 
Mitsubishi Corporation (MC; TSE: 8058) is a global integrated business
enterprise that develops and operates businesses across virtually every
industry including industrial finance, energy, metals, machinery, chemicals,
foods, and environmental business. MC's current activities are expanding
far beyond its traditional trading operations as its diverse business ranges
from natural resources development to investment in retail business,
infrastructure, financial products and manufacturing of industrial goods. With
over 200 bases of operations in approximately 80 countries worldwide and a
network of over 500 group companies, MC employs a multinational workforce of
nearly 60,000 people. For more information, please visit 
Mitsubishi Corporation
Telephone:+81 3 3210 2171
Facsimile:+81 3 5252 7705 
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