Home Business In Kitimat, B.C., Canada’s first LNG export terminal rises

In Kitimat, B.C., Canada’s first LNG export terminal rises

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The LNG Canada Industrial Energy Project is under construction on Sept. 28 in Kitimat, British Columbia. The project is now 70% complete.Darryl Dyke/Canadian Press

A construction site in northern British Columbia is in full swing, with thousands of workers pouring in to help build an $18 billion terminal to export liquefied natural gas.

Jason Klein was named CEO of LNG Canada in April, as the megaproject entered its busiest construction schedule.

Klein said he was optimistic about the global LNG demand side.

“It’s an exciting time to be here,” he said Wednesday at a media briefing about the sprawling construction site at the head of the Douglas Channel.

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Construction of LNG Canada’s Phase 1 terminal began in 2018 at the Kitimat industrial site in the traditional territory of Hyslnation. Currently the project is 70% complete for him.

Kitimat has an estimated annual population of 8,500, and the building frenzy is driving thousands of workers into the community.

With construction peaking through the end of next year, the Kitimat project will require up to 7,500 workers in rotation. This includes rooms at an onsite accommodation center called Cedar Valley Lodge, where he can accommodate 4,500 people at any given time.

LNG Canada’s Phase 1 is expected to begin exports to Asia in 2025. Korea’s first export terminal for fuel.

based in london shell sequencer Four other co-owners of the LNG Canada joint venture are pondering whether to approve Phase 2. Phase 2 will double the export capacity to 28 million tons per year.

The co-owners have not given a deadline for deciding whether to proceed with Phase 2, but Klein said expansion plans are under serious scrutiny. “We are having very detailed discussions about Phase 2,” he said. “I’m sure the world needs more of his LNG in Canada.”

To supply the export terminal, TC Energy Corp. is building the $11.2 billion, 670-kilometer Coastal GasLink pipeline. It is designed to transport natural gas from the North Montney region of northeastern BC to Kitimat.

The controversial pipeline is opposed by the hereditary chieftains of the Wet’suwet’en Nation, who say they make up most of the route. cross their unclaimed land.

A worker examines the inside of a huge liquefied natural gas storage tank. Construction of LNG Canada’s Phase 1 terminal began in 2018 at the Kitimat industrial site in the traditional territory of Hyslnation.Darryl Dyke/Associated Press

Kitimat’s economy is generally booming, but its prosperity is spread unevenly.

Deanna Schwartz, the manager of a local second-hand clothing store, has three employees and is having trouble hiring one or two.

“We’re trying to get people to bring in their resumes, and it’s a struggle,” she said.

Tammy Malcolm, waitstaff at Chalet Restaurant in Kitimat, said shortfalls in various retail and fast food outlets are common because small businesses cannot compete with high wages in labor camps. Told.

“People will be chasing money, you can’t blame them,” Malcolm said at breakfast on a split shift.

The chalet recently began closing on Sundays due to a shortage of staff, even though it was the busiest day of the week to attract customers.

The nearby Tim Hortons Outlet can barely keep up with demand, with long lines of pick-up truck customers queuing to arrive at the drive-thru window. Depending on the day, fast food restaurants often stay open late for breakfast or close early at night due to staff shortages.

Kitimat Mayor Phil Garmuth says that behind the shortage of workers in the services sector is his He said there are other factors that go well beyond the local government.

“Here in Kitimat, it’s not a unique situation where there’s not enough people running a business to run it full-time.”

Jason Klein was named CEO of LNG Canada in April, as the megaproject entered its busiest construction schedule. Klein said he is optimistic about the demand side of LNG in the world.Darryl Dyke/Canadian Press

The boom hasn’t necessarily translated into a surge in retailer earnings, as most of the workers and contractors are from out of town and don’t have to patronize many local businesses.

Germuth said it was a delicate balancing act for LNG Canada to welcome people to the work camp while avoiding burdening local services.

The much-anticipated retail renaissance hasn’t materialized at the City Center Mall, where Ellis Ross ran errands this week. Mr. Ross is a member of the State Legislature, representing Skeena Her Riding in the state, and a former elected chief councilor of the state of Hysla.

Still, the economic spin-off with the construction of LNG Canada has helped Haisla residents in the village of Kitamat, a 12-minute drive from Kitimat.

“Hysla Nation has its own funding and we built a youth center,” Ross said.

He is unabashedly pushing LNG exports, but is disappointed that Canada has yet to become a major player on the global LNG stage. “Europe is in an energy crisis,” said Ross. “But the rest of the world, people who understand energy, are laughing at Canada.”

An LNG processing unit called a train, which will be used to convert natural gas into liquefied natural gas, can be seen at the terminal under construction in Kitimat.Darryl Dyke/Canadian Press

Europe has sought to reduce its dependence on natural gas from Russia, which invaded Ukraine in February.

Ross and industry experts say LNG Canada’s exports of liquefied natural gas to Asia will indirectly help Europe. It will free up fuel supplies elsewhere in the world and reroute them to Germany and other European countries experiencing energy crises.

In addition to the potential expansion of LNG Canada, British Columbia has three other LNG proposals, all of which aim to begin exports in 2027.

Cedar LNG, a small project jointly owned by Haisla Nation and Pembina Pipeline Corp., is proposing to build a $3 billion export terminal in Kitimat to start exporting to Asia in about five years I want to Cedar relies on natural gas transported by Coastal GasLink.

Another small project, Woodfiber LNG, is slated for construction next summer on an industrial site in the traditional territory of Squamish Nation. Enbridge Inc. plans to acquire his 30% stake in Woodfibre, which it hopes to start exporting in 2027.

Similarly, a group of natural gas producers known as Rockies LNG is working with Nisgah to advance the Ksi Lisims LNG proposal in northern British Columbia. One pipeline route Rockies LNG is considering is TC Energy’s proposed Prince Rupert Gas Transmission project.

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