VANCOUVER, British Columbia, May 16 (UPI) -- British supermajor Shell announced it teamed up with its Asian partners to develop a proposal for a liquefied natural gas export hub in western Canada.
Shell declared it holds a 40 percent stake in the proposed LNG Canada project alongside Korea Gas Corp., Mitsubishi Corp. and PetroChina Co. Ltd., each holding a 20 percent stake in the project.
The project would consist of two LNG processing units that could produce as much as 6 million tons of LNG per year each.
Asian economies are some of the largest consumers of LNG in the world. Young Sik-kwon, vice president for Korea Gas, said the project would be a valuable asset not only to his country but to communities in British Columbia as well.
The export facility for LNG would be located in Kitimat on the west coast of British Columbia. Some provincial lawmakers and First Nations have objected to regional oil ambitions. The project company said the announcement of the partnership marks the start of formal consultations with aboriginal communities and regional residents.
A decision to take the project to the development stage begins after conducting engineering and environmental work.
"Start-up could come around the end of the decade, assuming all necessary regulatory approvals and investment decisions," declared Shell.