South Korean bank to provide loan for LNG Canada pipeline

South Korea’s KB Kookmin Bank will lend 240 million Canadian dollars ($171 million) for the construction of a pipeline that will supply gas to the Shell-led LNG Canada project.

KB Kookmin Bank said in a statement that it is the only South Korean lender taking part in the Coastal GasLink project funded by 27 global financial institutions.

Coastal GasLink is building a 667-kilometer-long pipeline worth about $5 billion that will transport natural gas from the Dawson Creek area to the LNG Canada facility being built in Kitimat, British Colombia.

The project is led by TC Energy, a company formerly known as TransCanada.

The pipeline will be able to move 2.1 billion cubic feet per day of natural gas with the potential for delivery of up to 5 bcf/d.

The project also recently secured a loan of up to $500 million from Export Development Canada, the country’s export credit agency.

Coastal GasLink announced a positive final investment decision to build the pipeline following a go-ahead from its partner, LNG Canada, on October 2, 2018.

Besides Shell, LNG Canada partners include Malaysia’s Petronas, PetroChina, Japan’s Mitsubishi Corporation and Kogas of South Korea.

The joint venture of JGC-Fluor Corporation is the project’s engineering, procurement and construction contractor.

LNG Canada will initially include two trains or processing units, that will receive and process natural gas, converting it into LNG ready for shipping.

These two units will have the capacity to produce 14 million tonnes of LNG per year.

The project, worth more than $30 billion, is one of the largest megaprojects in Canadian history.

Most Popular

Shell adds another LNG carrier to its fleet

A unit of UK-based LNG giant Shell has added another chartered liquefied natural gas carrier to its fleet.

Chevron, China’s ENN seal second LNG SPA

US energy giant Chevron has signed a second LNG sales and purchase agreement with Chinese independent gas distributor ENN.

CMA CGM, Evergreen, HMM, and Maersk eye LNG-powered containership orders

France's CMA CGM, Taiwan's Evergreen, South Korea's HMM, and Denmark's Maersk are all looking to order LNG dual-fuel containerships at yards in China and South Korea, according to shipbuilding sources.

More News Like This

Shell’s LNG Canada seeks OK to boost export capacity

Shell-led LNG Canada is seeking approval from the Canadian energy regulator to boost its annual export capacity by 6.4 percent.

Fluor, JGC score FEED job for LNG Canada expansion

A joint venture of US engineer Fluor and Japan's JGC has been awarded the contract to update the front-end engineering and design (FEED) for a proposed Phase 2 expansion of the Shell-led LNG Canada project.

Shell CEO says LNG Canada ramp-up in line with expectations

LNG Canada's production ramp-up is "very much" in line with what Shell had expected, according to Shell CEO Wael Sawan.

South Korea gets first LNG Canada cargo

The 174,000-cbm GasLog Glasgow, which is carrying the first liquefied natural gas cargo produced at the Shell-led LNG Canada facility in Kitimat, has arrived in Tongyeong, South Korea, according to shipping data.