Energy major Royal Dutch Shell said on Tuesday it had approved a vast liquified natural gas project in Canada to help meet an expected boom in Asian demand.
The London-listed company said in a statement that its Shell Canada Energy division had given the green light to its investment in the Kitimat LNG joint venture project in British Columbia.
Shell, which has a 40-per cent working interest, added that funding would come from its capital investment guidance of $25-30 billion per year.
“We believe LNG Canada is the right project, in the right place, at the right time,” said Shell Chief Excecutive Ben van Beurden.
“Supplying natural gas over the coming decades will be critical as the world transitions to a lower carbon energy system.
“Global LNG demand is expected to double by 2035 compared with today, with much of this growth coming from Asia where gas displaces coal.”
The other companies in the Kitimat joint venture comprise Petronas, PetroChina, Mitsubishi Corporation, and Korea Gas Corporation.
The project has a 40-year export license and all major environmental permits are in place for both the plant and the pipeline, according to Shell.