LNG Canada`s structure, which includes a number of partners such as Malaysian petrol company Nasional Bhd., Korea Gas Corp., PetroChina Co. Ltd. and Japan`s Mitsubishi Corp., requires each participant to source, transport and market its own quantities. All companies secured supply to British Columbia either through agreements with producers or through local subsidiaries. Shell and Korea Gas have hinted that they need to source gas from external sources to complete the second phase of the project, Wang said. Additional pipeline capacity and a finished natural gas delivery could prompt LNG Canada Development Inc. to add more trains to the plant before they are even completed, Dulles Wang, director of American gas research at Wood Mackenzie, told a webinar. During TransCanada Corp. will have overcapacity in its Coastal GasLink pipeline, and in the Montney and Duvernay productive slates, there are a lot of fuel reserves, which will depend on securing purchase agreements for the facility, Wang said. LNG Canada is approximately five years away from shipping its first LNG cargo. JEA`s latest HoA is for the purchase of 16 LNG loads per year by LNG Canada Venture, and the Japanese buyer said the deal “will contribute to a stable and cost-effective supply of LNG in the future.” The destination clause of this purchase agreement with Royal Dutch Shell is in line with the Japan Fair Trade Commission`s June 2017 report on gng trades, and JERA said it believes it will help to adequately address the uncertainty surrounding LNG supply and demand and optimize its global gas portfolio. The commercial success of Shell`s CAD-led LNG Canada project is increasingly safe according to Japan`s JERA Co Inc. has signed a Heads of Agreement (HoA) for the receipt of up to 1.2 mtpa liquefied natural gas for 15 years starting in April 2024.
LNG Canada`s other fixed customers are Tokyo Gas, Toho gas and Korea Gas, as well as global trading house Vitol. While nearly 20 LNG facilities have been proposed for the north coast of British Columbia, only the LNG Canada project has secured the construction cords from investors. Wang said Woodfibre LNG Ltd., a smaller facility planned for the province`s south coast, was the next project that would be most likely to move forward.