With global demand for natural gas from sources other than Russia accelerating, LNG Canada is weighing whether to build by 2030 a second phase to double annual capacity to 28 million tonnes
Shell PLC’s LNG Canada export project in British Columbia plans to start building its proposed second phase with natural gas-powered turbines and switch to electricity as more renewable power becomes available, a top executive said, a decision that means the expansion project will initially generate high greenhouse gas emissions.
LNG Canada now plans to initially build Phase 2 with natural gas-powered turbines and switch to electric motors as more power becomes available, pending a final investment decision, CEO Jason Klein told Reuters on Friday.The company’s move to only gradually switch to renewable electricity risks means the Phase 2 project would produce initially high emissions that would run up against ambitious emissions reduction goals set by the British Columbia and federal governments.
Klein said LNG Canada had not directly asked for financial assistance from either government to build transmission lines and electrify Phase 2, and is still assessing the project’s economics.LNG Canada has full environmental permits from both governments to use natural gas turbines for Phase 2, making it unclear what leverage governments have to force electrification.
The terminal, which LNG Canada says would have the lowest emissions intensity in the world, will emit 4 million tonnes of greenhouse gases annually with both phases based on natural gas power. That’s the equivalent of 0.6 per cent of Canada’s total 2020 emissions. Mora Scott, a BC Hydro spokesperson, said the utility expects to have more than enough power until the end of the decade and is planning for scenarios including rapid growth from mining and LNG development.
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