Royal Dutch Shell is pushing forward a long-delayed liquefied natural gas export project in British Columbia, making it the first Canadian LNG terminal to get the financial green light.
Shell's decision on Tuesday to move forward the $14 billion LNG Canada project — the largest of its kind in years — signals confidence that global demand will rise quickly enough to sop up growing supplies of LNG. It also opens a new competitive front for the U.S. terminal developers lining up to take advantage of booming demand for natural gas super-chilled to liquid form, particularly in Asia.
The company deferred approving LNG Canada in 2016 during a period of weak LNG prices. Shell is now moving forward as prices strengthen and the Anglo-Dutch energy giant continues to stake its future on the growing role of natural gas in the world's energy mix.
"We believe LNG Canada is the right project, in the right place, at the right time," Shell CEO Ben van Beurden said in a statement.
"Global LNG demand is expected to double by 2035 compared with today, with much of this growth coming from Asia where gas displaces coal."