Canada's rich gas reserves will be unlocked for the first time with the completion of the project.
The first natural gas export terminal in Canada is being built on the B.C. coastline.
The site on the traditional territory of the Haisla Nation is home to more than 5,000 construction and trades workers.
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The first of four jet engines that will power the terminal's liquefaction process arrived in Kitimat by boat from Italy on September 20. One important step closer to seeing the first cargo of liquified natural gas leave from its shores is its arrival.
By the middle of the decade, the full economic potential of Canada's rich gas reserves could be unlocked for the first time, thanks to the construction of Liquefied NATURAL GAS CANADA.
It will take some getting used to in the oilpatch. Despite being the fifth largest supplier of natural gas in the world, Canada's energy sector has been hemmed in by market conditions in the U.S.
Once it is operational, LNG Canada will be a major export terminal for liquified natural gas from the West Coast. Requiring a massive infrastructure lift, including the largest tank built for LNG in the world (2nd only in size to a tank built for imports in Southeast Asia) pic.twitter.com/n2B4yl8J2G
— Meghan Potkins (@mpotkins) September 29, 2022
An export terminal on the West Coast would be a game-changer for Canadian producers who have been maxing out the volumes they can push into the U.S. Canada exported natural gas to the U.S. at an average of 7.6 Bcf/d in the year.
There isn't much room to do anything else besides what they're sending right now. This will be a large outlet as well. If the price of gas in North America stays high, it could easily grow production.
Hundreds of kilometres inland, veteran oilpatch leaders have watched as more than a dozen West Coast Liquefied Natural Gas projects were abandoned or canceled over the years as regulatory delays or market conditions soured investors.
The oilpatch veterans want Shell and its partners to approve a second phase of the project that would double the plant's export capacity.
There's a view of the site.
The photo was taken byMeghan Potkins.
10 to 15 years ago, we had an opportunity that we had to get after. Mike Rose said that they didn't for a number of reasons. We have a second chance to fix it. I would like to see more than just the first phase of the project on the west coast.
Canada has advantages as a West Coast Liquefied Natural Gas exporter, according to experts. They include the low-cost supply from western gas fields such as the giant Montney formation that straddles the border between Northern B.C. The Kit inimat facility of Liquefied Natural Gas Canada will have one of the lowest carbon intensities in the world.
The $40-billion facility is furthest along of a small pack of proposed West Coast projects that have benefited from the fresh interest in Canadian Liquefied Natural Gas.
Even as new equipment and machinery arrive almost weekly, work can't progress fast enough for investors in Kitimat. A 56-meter-high circular tank, the second- largest in the world, is nearing completion and will eventually store the super-chilled natural gas until the tanker arrives.
There is a terminal under construction in Kitimat.
The photo was taken byMeghan Potkins.
There are drawbacks to being a late entrant in a crowded market.
If global demand for natural gas declines faster than expected, the long-term nature of investments in Liquefied Natural Gas presents a risk. It is possible that global gas demand could peak in the 2030s as governments switch to low-carbon energy sources, according to a climate model published by Shell.
It doesn't make sense to build a facility if you don't think you'll use it for a long time. There are a lot of questions about natural gas in the future. What does it look like in 2045, that is what I would be most concerned about.
The growing relationship between the energy sector and Indigenous communities is one of the factors helping to bolster local enthusiasm.
What does it look like in 2045?
Richard is the son of Richard.
The focus now is on consultations and carefully negotiated benefit agreements with communities affected by the energy sector's activities in a reversal of the industry's old pattern.
More than 20 joint-venture partnerships with related businesses have been formed by the project, which was built on the Haisla Nation. Crystal Smith said that she has urged her nation's members to take advantage of training and career opportunities after the construction of the mega-project ends.
Smith said that they wanted to support the project. Smith pointed to the area's housing shortage and difficulties in attracting and retaining teachers and an addictions counsellor as reasons for not being perfect.
For most of the time, what we are experiencing is what we wanted for our people in our community.
Smith said that the Cedar project would be majority-owned by Indigenous groups, which would make it even better. There is an environmental assessment process in B.C.
Our journey began with not having a say in any opportunity that occurred in our territory, to being active at-the-table decision makers helping the project succeed. It is a huge legacy that we are the decision makers.
It's not clear how many projects will be approved by Canadian regulators.
The chief executive of Canada'sliquefied natural gas company.
This photo was taken by The Canadian Press.
More detailed plans to cut emissions from the oil and gas industry will be rolled out by the governments of Canada and B.C. Some oilpatch leaders and Indigenous groups with ambitions to invest in energy projects have warned against the introduction of a sector specific emissions cap.
The economics of Shell's project and the sector's potential to endure as the global energy transition unfolds are still optimistic according to the CEO of Liquefied Natural Gas Canada.
Klein said that the company has a permit to operate in Kitimat for 40 years.
Klein said that the last molecule would be the cleanest. We are a clean molecule and that is one of the reasons why I am so positive about Canada. Right now, in the world, that's right here, because the cleanestLNG will be the last one when people start getting picky.
The email was mpotkins@postmedia.
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