Champagne on ice, balloons ready to drop; as Kitimat awaits its FID announcement

The overview of the LNG Canada site proposed for Kitimat
(from LNG Canada animation presentation)

Things are building to pretty elevated point of excitement for the Kitimat region today as the focus turns to what is anticipated as a Final investment announcement for the Kitimat LNG project, expected sometime this week, if not today.

Hints towards a positive outcome for the lengthy process from proposal to development began to pick up speed last week, led by national financial news sources who cited officials with a pair of partner company's with Royal Dutch Shell as having signed on board for the plan to develop a 40 billion dollar terminal and pipeline project.

By mid afternoon Sunday, LNG Canada was doing its best to try to keep all the speculation into perspective, taking to social media to counsel patience from those anticipating any announcement.

Part of that caution reportedly comes as LNG Canada awaits confirmation of the participation of the remaining three partners in the project.

Yet, the news cycle yesterday, carried on undaunted, with a stream of articles indicating that the much anticipated announcement is not that far off.

Shell, partners approve huge $40 billion LNG Canada project, sources say
Huge LNG plant in Kitimat, gets the green light, reports say
2 of 5 investors grant final approval to $40B LNG Canada project
LNG politics ramp up as massive project approval looms
Shell's $40B LNG Canada project to be announced as early as Monday: report

Should LNG Canada deliver confirmation of their investment plans, it will prove to be seismic shift for the industrial footprint of the North Coast, with Kitimat the centre of the major investment for the short term, along with the jobs and spin off economic benefits that will come with such a massive development in their community.

Along with the Kitimat LNG proposal, Kitimat officials indicate that it may be but the first of a number of potential industrial projects that planning to set their course for the Douglas Channel area.




It's a news making moment that could have been Prince Rupert's at one time, had things gone a little differently on the LNG files, with both the Petronas led Pacific Northwest LNG project and Chinese led Aurora LNG projects both abandoned over the course of the last year, the list one of a time stamp of Prince Rupert's last five years of LNG fever that was never delivered.

Both of those projects had offered the prospect of significant investment in the community and what would have been a major shift in the industrial base for the community, but now are part of the history books of Prince Rupert's projects that never were.

Premier Horgan has been talking up the Kitimat LNG project as an indication that his NDP government is ready to move ahead with an LNG strategy, something that those of us in Prince Rupert never really seemed to get a feeling for, back when the NDP was serving as the opposition party.

When the word comes and all indications seem to be that it soon will, Kitimat will be able to rightfully stake claim to the Open for Business theme that most communities always suggest is their ongoing focus ... and having been as strong an advocate for the industry as the Kitimat Mayor and Council have been, they will be full value for that victory celebration that is surely to be launched.

And even as the speculation of a positive announcement percolates today, plans for the future for the Kitimat area are already in motion, with Mayor Phil Germuth noting for CTV News that Kitimat has already heard inquiries for further development in the community.

For more background on the Kitimat LNG project see our archive page here.

Cross posted from the North Coast Review