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Royal Dutch Shell PLC
RDSB
On Tuesday, the Shell Canada Energy subsidiary gave the green light to invest in LNG Canada, a major liquefied natural gas project in British Columbia in which the Anglo-Dutch oil company holds a 40% stake.
Shell said while the LNG Canada joint venture participants also made the final decision to invest in the project, construction will begin immediately and the first liquefied natural gas is expected by the middle of the next decade.
The company's 40% share of the project's capital costs is included in the current capital investment forecast of $ 25 billion to $ 30 billion a year, Shell said.
Shell did not specify the amount of its investment, but recent press reports have suggested that the project could cost C $ 40 billion ($ 31 billion).
Chief Executive Officer Ben van Beurden said global demand for liquefied natural gas is expected to double by 2035. He said LNG Canada should provide Shell with an integrated internal rate of return of approximately 13%, while the project will generate significant cash flow. , long life and resilient.
LNG Canada will initially export liquefied natural gas from two processing units, called trains, totaling 14 million metric tons per year. It will be possible to increase production to four trains in the future.
The project has an export license in effect for 40 years and all major environmental permits are in effect for the plant and the pipeline, Shell said.
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