Companies Behind LNG Canada Formalize Joint Venture; Milestone for Proposed Project

 Companies Behind LNG Canada Formalize Joint Venture; Milestone for Proposed  Project  VANCOUVER, April 30, 2014 /CNW/ - 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  venture.  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  pipeline  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  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.  PetroChina  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  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.  Mitsubishi Corporation  Diamond LNG Canada Ltd. (an affiliate of Mitsubishi Corporation) ["Mitsubishi  Corporation"] is a global integrated business enterprise that develops and  operates business across virtually every industry including industrial  finance, energy, metals, machinery chemicals, foods, and environmental  business. Since pioneering the first LNG import to Japan from Alaska in 1969,  MC handles 40% of Japan's LNG imports and has successfully built a portfolio  of LNG export investments across Australia, Indonesia, Malaysia, Brunei, Oman,  Russia and North America.  About LNG  Liquefied natural gas (LNG) is natural gas in its liquid form. LNG is an  odourless, non-toxic and non-corrosive liquid and evaporates quickly and  disperses, leaving no residue. Natural gas is converted to LNG by cooling the  gas to approximately -162 degrees Celsius, at which point it becomes a liquid.  This process reduces its volume by a factor of more than 600, making it  efficient to be transported by sea to global markets. Transportation of LNG by  marine carriers has a long record of safe operation. In LNG's more than  50-year shipping history, LNG carriers have traveled more than 150 million  miles without a major incident.    SOURCE  LNG Canada  Media Contact: LNG Canada Media Relations, Kirsten Walker, Email:  Scan-media@lngcanada.ca, Phone: +1 604 603 4734, www.lngcanada.ca  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/April2014/30/c2568.html  CO: LNG Canada ST: British Columbia NI: VNT