LNG Canada is a consortium which includes Shell, Petronas, Kogas, Petrochina and Mitsubishi.
The export terminal is expected to open up Canada to gas export opportunities, stimulate new demand for gas supply and shift domestic gas pricing towards international parity.
The LNG Canada facility will initially liquefy and export 13 million tonnes per annum (mtpa), or the equivalent of 3.5% of global LNG supply in 2017, potentially expanding to 28 mtpa.
Calima managing director Alan Stein said the go-ahead for LNG Canada was very positive news, with the Company’s 72,000 acres of Montney rights located immediately adjacent to the proposed pipelines that will feed the new LNG projects at Kitimat.
Stein added “Opening up the Montney to new international markets with crude based pricing is great news for producers and resource owners.
“With four additional LNG projects already approved by the Canadian Government more FID decisions are expected to follow.
“Prices for Montney drilling rights appear to have risen sharply this year and we expect that trend to continue on the back of this news.”
Calima preparing to drill its first well before year end
A review of infrastructure opportunities in the Montney undertaken by Calima earlier this year identified LNG Canada as potentially providing significant benefits for its project development plans.
Following the recent completion of a $25 million oversubscribed placement, Calima is in a robust financial position being funded to undertake its first drilling campaign.
The company has 72,000 acres of drilling rights considered prospective for the Montney Formation which is now the biggest oil and gas play in Canada.
Calima is currently preparing to drill one vertical well and two horizontal wells in its Montney project area.