In October, Royal Dutch Shell announced it will go ahead with construction of the $40 billion LNG Canada facility. Petronas, a partner in the endeavour, announced it has signed a deal with trading house Vitol for 0.8 million tonnes per year of LNG beginning in 2024 and lasting 15 years. LNG Canada graphic.
To date, LNG Canada deals signed with Vitol, Tokyo Gas, Toho Gas and Korea Gas Corp
LNG Canada announced on Thursday that it has signed up another buyer for liquified natural gas from the British Columbia LNG export project.
Project partner Petronas reports it has inked a deal with trading house Vitol to supply 0.8 million tonnes per year of LNG beginning in 2024. The contract is set to last for 15 years.
“The primary supply to Vitol will come from LNG Canada as well as from (Petronas’) other global LNG supply portfolio,” Vitol said.
Other Asian utility companies, including Tokyo Gas, Toho Gas and Korea Gas Corp have already signed deals with LNG Canada. Along with Vitol, the buyers have committed to offtake about 2.4 mtpa collectively.
Toho Gas will buy 0.3 mtpa, Tokyo Gas 0.6 mtpa and Kogas has agreed to purchase 0.7 mtpa from LNG Canada.
Malaysian oil and gas giant Petronas bought a 25 per cent stake in the $40 billion LNG Canada project in May. In October, Shell announced its decision to go ahead with the northern BC project which will export natural gas from northeastern British Columbia to customers around the globe.
According to Reuters, Shell’s decision is the first major investment decision in a new North American LNG export project in two years and is expected to launch a new wave of such projects in the region.
LNG Canada is a joint venture company comprised of five global energy companies Shell, PETRONAS, PetroChina, KOGAS and Mitsubishi Corporation.