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AlwaysFree: Shell-Led LNG Canada Project Threatened By Pipeline Cost Dispute

Author: SSESSMENTS

A Shell-led LNG project in Canada is threatened with another delay by a dispute over the cost to complete a pipeline that will supply feedgas to the plant. TC Energy Corp, which builds the Coastal GasLink pipeline, said on Thursday it might suspend major construction activities if the dispute could not be resolved over the short term. TC Energy did not elaborate on how much costs have escalated. In early 2020, the pipeline was estimated to cost CAD6.6 billion ($5.3 billion).

LNG Canada aims to convert 14 million tons/year of natural gas into LNG and sell it to energy-consuming markets in Asia. However, works on building a pipeline that will bring natural gas from northeastern British Columbia to the plant on the Pacific coast have encountered issues, including pandemic-related delays and protests from indigenous and environmental groups.

TC Energy is in confidential discussions with the project’s backers to cover the incremental costs in the final pipeline tolls. The project is being developed by a consortium of Shell, Petronas, Mitsubishi Corp, PetroChina, and Korea Gas Corp. It aims to send its first LNG cargo by the middle of the decade.

Tags: AlwaysFree,Americas,Canada,English,Gas

Published on August 3, 2021 9:34 AM (GMT+8)
Last Updated on August 3, 2021 9:34 AM (GMT+8)