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October 2, 2018
Mitsubishi Corporation

Mitsubishi Corporation Reaches Final Investment Decision on LNG Canada Project

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 LNG Canada】
Location: Kitimat, British Columbia, Canada (650 km northwest of Vancouver)
Capacity: 14 million tonnes per annum (mtpa) for two trains
Production commencement: mid 2020s
Production period: 40 years from time production commences
LNG Canada is a joint venture comprised of Royal Dutch Shell plc, through its affiliate Shell Canada Energy (40%); PETRONAS, through its wholly-owned entity, North Montney LNG Limited Partnership (25%); PetroChina Company Limited., through its subsidiary PetroChina Canada Ltd. (15%); Mitsubishi Corporation, through its subsidiary Diamond LNG Canada Ltd. (15%); and Korea Gas Corporation, through its wholly-owned subsidiary Kogas Canada LNG Ltd (5%). It is operated through LNG Canada Development Inc.
【Planned location of LNG Canada】
【Plant completion drawing】
Company Outlines】
(Name)Royal Dutch Shell plc
(Date Established)1907
(Headquarters)The Hague, Netherlands
(Representative)Ben van Beurden, CEO
(Business Activities)Largest European energy company that operates petroleum, chemicals and natural gas business worldwide
(Name)Petroliam Nasional Berhad
(Date Established)1974
(Headquarters)Kuala Lumpur, Malaysia
(Representative)Tan Sri Wan Zulkiflee Wan Ariffin, President & Group Chief Executive Officer
(Business Activities)Malaysia’s state-owned energy company that develops, produces and supplies crude oil, natural gas and petrochemical industrial products
(Name)PetroChina Company Limited
(Date Established)1999
(Headquarters)Beijing, China
(Representative)Zhang Jianhua, President
(Business Activities)China’s state-owned energy company that develops, produces and supplies crude oil, natural gas and petrochemical industrial products
(Name)Korea Gas Corporation
(Date Established)1983
(Headquarters)Daegu, Korea
(Representative)Seung-Il Cheong, President
(Business Activities)Korea’s state-owned energy company that operates LNG receiving terminals in Korea and nationwide gas supply pipeline network
(Name)Mitsubishi Corporation
(Date Established)April 1, 1950
(Headquarters)2-3-1 Marunouchi, Chiyoda-ku, Tokyo
(Representative)Takehiko Kakiuchi, President and Chief Executive Officer
(Business Activities)A global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business.
Reference: Cutbank Ridge Partnership

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