TOKYO, Oct 2, 2018 - (JCN Newswire) - Mitsubishi Corporation (MC) is pleased to announce that it has taken a final investment decision (FID) on LNG Canada, a major liquefied natural gas (LNG) project in Kitimat, British Columbia, Canada. The project is being developed as a joint venture with Shell, PETRONAS, PetroChina and KOGAS.
LNG Canada respresents one of the most significant energy investment projects in Canadian history. With it's geographical advantage in terms of relative proximity to Asia, this project will be launched through partnerships that incorporate the major LNG consuming countries in Asia. MC's role will be to provide customers in Asia, mainly in Japan, with a new stable supply source of LNG based on abundant natural gas in Canada.
With the shift to a low-carbon society, global demand for natural gas as a major energy source suitable for coexistence with renewable energy and with relatively low environmental impact, is expected to grow steadily, mainly in Asia. Meanwhile, the global LNG market is likely to experience a tightening of supply in the early 2020s due to an increase in the number of LNG consuming countries.
In light of these circumstances, LNG Canada plans to construct a natural gas liquefaction plant at Kitimat. The project will have a combined capacity of 14 million tons per annum (mtpa) and two processing units, with operations slated to commence in the mid-2020s. The total estimated development cost of the plant is about US$14 billion, with MC being responsible for a working interest of 15% of the total cost, and an offtake of over 2.1 million tons of LNG annually.
Under support from the Japanese government through Japan Oil, Gas and Metals National Corporation (JOGMEC), MC is also seeking to build a consistent natural gas value chain from upstream to midstream in Canada by supplying feed gas from the Montney project being developed by MC in British Columbia through participation in Cutbank Ridge Partnership.
MC has been in the LNG business for about 50 years, with experience developing business in Southeast Asia, Australia, Russia, USA and the Middle East. The launch of this project not only allows the company to help expand employment opportunities and economic development in Western Canada, but it is also an opportunity to help make inroads in the development of the LNG business, which has low environmental impact, while at the same time helping to provide a stable supply of energy. This is consistent with MC's aim of simultaneously generating economic, societal and environmental value.
About Mitsubishi Corporation
Mitsubishi Corporation, headquartered in Tokyo, 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. Mitsubishi Corporation'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. For more information on Mitsubishi Corporation, please visit the company's website at https://www.mitsubishicorp.com/jp/en/.
Oct 2, 2018 15:46 HKT/SGT
Source: Mitsubishi Corporation
Mitsubishi Corporation (TSE: 8058)
Topic: Press release summary
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