LNG Canada’s announcement to begin the development of Phase 2 follows reports of early technological problems at the new plant.\n\nLNG Canada is a 14 million tonnes per annum (mtpa) LNG production plant. The facility sent its first cargo on June 30. A JV consisting of Shell, Petronas, PetroChina, Mitsubishi and KOGAS operates the terminal.\n\nThe second phase would double the plant’s production to 28 mtpa.\n\n\"A FEED contract can often be a precursor to a positive final investment decision (FID) being made by a project’s proponent(s), in this case, the LNG Canada consortium, but is not a guarantee that such an FID will take place,\" analytical firm RBN wrote in a report on the contract.\n\nLNG Canada has not scheduled a potential date for an FID. The organization, led by CEO Chris Cooper, is developing a second phase in conjunction with all members of the JV, according to the company’s website.\n\nThe company is also working with the Canadian Government. British Columbia Premier David Eby discussed ongoing discussions with LNG Canada and the federal government to clear the path to an FID for Phase 2, according to a report in the Terrace Standard, a regional news publication.\n\nThe FID discussions occurred at the same time as reports that the facility had experienced technical problems as it continued to ramp up production.\n\nThe company’s liquefaction train is running at 50% because of an issue with a turbine and refrigeration unit, according to an S&P Global report based on anonymous sources. One cargo ship had been diverted, according to the story.\n\nLNG Canada had sent four cargoes as of July 30.

LNG Canada Advances Toward Phase 2 as Fluor, JGC Secure FEED Contract

LNG Canada, a 14 million tonnes per annum LNG production plant operated by a joint venture (JV) of Shell, Petronas, PetroChina, Mitsubishi, and KOGAS, is advancing toward Phase 2 development. The project faces technical challenges, including a 50% reduced liquefaction train capacity due to turbine and refrigeration unit issues, and a diverted cargo ship. The JV is working with the Canadian government, including British Columbia Premier David Eby, to secure a final investment decision (FID) for Phase 2, which would double production to 28 mtpa.