One of the major players in the oil sector, ExxonMobil, is understood to be going ahead with plans to build an LNG export terminal in British Columbia, Canada – valued at $21bn.
With falling oil prices also forcing the cost of LNG down, as the pair are intrinsically linked in the markets, there were doubts being cast about the suitability of the project.
But according to an environmental review application submitted to the British Columbia provincial government last week by ExxonMobil, along with Canadian affiliate Imperial Oil Ltd., the company is considering the construction of the terminal which will be located on the Pacific Coast. The facility would initially liquefy and export 15 million metric tonnes of LNG every year.
This proposed terminal is one of 18 export facilities proposed for just Canada’s Pacific Coast and will be targeting supply deals secured with Asian markets. However, both Petroliam Nasional postponed a decision to build a C$36bn LNG project, due to falling oil prices – with the BG Group also deferring a similar plan.