BG May Buy Gas Fields in Canada to Produce LNG for Asia
BG Group Plc (BG/), the U.K. energy company planning to become world’s largest seller of liquefied natural gas, is looking at purchasing fields in Canada that could supply a proposed LNG plant on the nation’s Pacific Coast.
“We are pursuing several supply options and would anticipate supply from owned resource and purchased from the markets,” Chief Operating Officer Martin Houston said today.
BG plans to build an LNG plant on Ridley Island in British Columbia to ship the fuel to growing markets in Asia. It has already agreed to build an 850-kilometer (525-mile) pipeline with Spectra Energy Corp. (SE) to pump gas to the facility and is looking to secure further resources.
BG plans two production units at the Prince Rupert LNG plant with a combined capacity of 14 million metric tons a year, and may have an option to add one more, Houston told investors today in London. The terminal is one of several planned for Canada’s Pacific Coast to liquefy gas for shipment by tanker.
“We are exploring options with some of the promoters of the other western Canada LNG projects to see if we can cooperate in the development of the shared pipeline,” Houston said.
BG expects to make a final investment decision on the Prince Rupert venture in 2016 and will pay a fee to bring gas to the plant through the proposed pipeline. TransCanada Corp. (TRP), Canada’s second-biggest pipeline operator, has been working with Petroliam Nasional Bhd and Royal Dutch Shell Plc (RDSA) on two separate plans for westbound pipelines through British Columbia.
BG expects to produce its first LNG in Canada around 2020, Houston said. The Reading, England-based company is set to become the world’s largest seller of LNG in 2017.
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