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Researched by Industrial Info Resources (Sugar Land, Texas)--Last week, British Columbia Premier John Hogan announced that the province would eliminate a tax of 3.5% to 5% of net income on liquefied natural gas (LNG) projects to encourage development in this sector. Over the years, several LNG projects have been proposed in the province, which is in a prime position on the Pacific Ocean to reach lucrative Asian markets. However, after oil prices declined, resulting in lower oil-linked gas prices, several projects have remained in a state of limbo, and none has actually begun construction. Industrial Info is tracking more than $98 billion in proposed LNG projects in British Columbia.
Among the projects that are obviously firmly in the province's sites for development is LNG Canada's (Kitimat, British Columbia) planned LNG liquefaction facility in Kitimat, which is expected to reach a final investment decision later this year. LNG Canada is headed by Royal Dutch Shell plc (NYSE:RDS-A) (The Hague, Netherlands) and includes Mitsubishi Corporation (Tokyo, Japan), Korea Gas Corporation (Daegu, South Korea) and PetroChina Company Limited (Beijing, China). An initial final investment decision on the project was expected in 2016, but was delayed due to falling prices.
LNG Canada's liquefaction plant would initially have two production trains, each capable of producing 6 million metric tons per year of LNG. The project also would include two 225,000-cubic-meter full containment storage tanks using Shell's double mixed-refrigerant LNG technology. If a final investment is reached this fall, construction could potentially begin next year, taking about three years to complete. The site could eventually have four production trains, the second two of which could begin construction upon completion of trains 1 and 2. Stantec Incorporated (NYSE:STN) (Edmonton, Alberta) and Ledcor Group of Companies (Vancouver, British Columbia) are acting as consultants on the project. For more information see Industrial Info's project reports on trains 1 and 2 and the potential trains 3 and 4.
Another project that appears to be making progress is Pacific Oil & Gas Limited's (Singapore) planned production facility in Squamish, British Columbia. Last year, the company was given permission to export LNG for 40 years by Canada's National Energy Board. The facility would process 220 million cubic feet per day of natural gas to produce 2.1 million metric tons per year of LNG through two trains. Fluor Corporation (NYSE:FLR) (Irving, Texas) is providing engineering on the project, which has an estimated total investment value of $1.3 billion plus a $50 million pretreatment unit. Construction could potentially begin next year, taking about three years to complete. Guangzhou Gas Company Limited (Guangzhou, China) has committed to buying 1 million metric tons per year of LNG from the facility. For more information, see Industrial Info's project reports on the LNG plant and pretreatment unit.
Also in development is Steelhead LNG Corporation's (Vancouver, British Columbia) plans for an LNG plant near Port Alberni, British Columbia. The initial facility would have a production capacity of 12 million tons per year via two production trains. The facility could eventually grow by two more production trains, bringing total plant production to 24 million tons per year of LNG. WorleyParsons Limited (North Sydney, Australia) is performing design engineering on the project. For more information, see Industrial Info's project reports on the initial construction and Phase II expansion.
British Columbia's tax on LNG production facilities was set under the previous government, when construction of facilities in the province was expected to boom. However, low LNG spot prices in Asia, the primary destination for British Columbia LNG, caused several delays. The reduction of taxes could help encourage final investment decisions in the near future.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Among the projects that are obviously firmly in the province's sites for development is LNG Canada's (Kitimat, British Columbia) planned LNG liquefaction facility in Kitimat, which is expected to reach a final investment decision later this year. LNG Canada is headed by Royal Dutch Shell plc (NYSE:RDS-A) (The Hague, Netherlands) and includes Mitsubishi Corporation (Tokyo, Japan), Korea Gas Corporation (Daegu, South Korea) and PetroChina Company Limited (Beijing, China). An initial final investment decision on the project was expected in 2016, but was delayed due to falling prices.
LNG Canada's liquefaction plant would initially have two production trains, each capable of producing 6 million metric tons per year of LNG. The project also would include two 225,000-cubic-meter full containment storage tanks using Shell's double mixed-refrigerant LNG technology. If a final investment is reached this fall, construction could potentially begin next year, taking about three years to complete. The site could eventually have four production trains, the second two of which could begin construction upon completion of trains 1 and 2. Stantec Incorporated (NYSE:STN) (Edmonton, Alberta) and Ledcor Group of Companies (Vancouver, British Columbia) are acting as consultants on the project. For more information see Industrial Info's project reports on trains 1 and 2 and the potential trains 3 and 4.
Another project that appears to be making progress is Pacific Oil & Gas Limited's (Singapore) planned production facility in Squamish, British Columbia. Last year, the company was given permission to export LNG for 40 years by Canada's National Energy Board. The facility would process 220 million cubic feet per day of natural gas to produce 2.1 million metric tons per year of LNG through two trains. Fluor Corporation (NYSE:FLR) (Irving, Texas) is providing engineering on the project, which has an estimated total investment value of $1.3 billion plus a $50 million pretreatment unit. Construction could potentially begin next year, taking about three years to complete. Guangzhou Gas Company Limited (Guangzhou, China) has committed to buying 1 million metric tons per year of LNG from the facility. For more information, see Industrial Info's project reports on the LNG plant and pretreatment unit.
Also in development is Steelhead LNG Corporation's (Vancouver, British Columbia) plans for an LNG plant near Port Alberni, British Columbia. The initial facility would have a production capacity of 12 million tons per year via two production trains. The facility could eventually grow by two more production trains, bringing total plant production to 24 million tons per year of LNG. WorleyParsons Limited (North Sydney, Australia) is performing design engineering on the project. For more information, see Industrial Info's project reports on the initial construction and Phase II expansion.
British Columbia's tax on LNG production facilities was set under the previous government, when construction of facilities in the province was expected to boom. However, low LNG spot prices in Asia, the primary destination for British Columbia LNG, caused several delays. The reduction of taxes could help encourage final investment decisions in the near future.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
