As a result of this transaction, if approved and upon closing, ownership interests in LNG Canada would be Shell Canada Energy, a subsidiary of Royal Dutch Shell plc (“Shell”), (40%); PETRONAS (through NMLLP), (25%); PetroChina Kitimat LNG Partnership, a subsidiary of PetroChina Canada Ltd., (15%); Diamond LNG Canada Ltd., a subsidiary of Mitsubishi Corporation, (15%); and Kogas Canada LNG Ltd. (5%).

British Columbia (B.C.) is home to one of the largest and most accessible sources of natural gas in the world. If constructed, LNG Canada participants will ship natural gas, including from B.C.’s vast reserves, to various countries where the imported gas could displace more carbon intensive energy sources, helping to reduce greenhouse gas emissions.     

LNG Canada recently selected the joint venture of JGC Corporation (“JGC”) and Fluor Corporation (“Fluor”) as the Engineering, Procurement and Construction (EPC) contractor for the project and is currently finalising materials in preparation for a final investment decision (FID) by joint venture participants.

The transaction announced today does not amount to an FID which remains pending. The timing and outcome of an FID will be decided by joint venture participants based on global energy markets, and the overall competitiveness and affordability of the project.

About LNG Canada

The LNG Canada joint venture is proposing to build a liquefied natural gas (LNG) export facility in Kitimat, British Columbia, Canada, that would initially consist of two world-scale LNG processing units, referred to as “trains”. The project would include an option to expand to four trains in the future.

About the Joint Venture Participants

About Shell

Shell has been a pioneer in LNG for more than 50 years and is involved in every stage of the LNG value chain: from finding the fields, extracting the gas and liquefying it; to shipping LNG and turning it back into gas; to distributing it to customers. Shell has LNG supply projects around the world, as well as interests in and long-term capacity access to regasification plants. Shell Canada Energy is a wholly owned subsidiary of Royal Dutch Shell plc.

About PETRONAS

PETRONAS is a fully integrated energy company with extensive experience in LNG. Through its wholly owned upstream energy company Progress Energy and its partners, PETRONAS is one of the largest natural gas reserves owner in Canada – with the majority of these reserves in the North Montney natural gas formation in northeast British Columbia. The North Montney LNG Limited Partnership is a wholly-owned entity of PETRONAS.

About Mitsubishi Corporation

Mitsubishi Corporation is Japan’s largest trading company with more than 50% share of LNG imported into Japan. Mitsubishi has been investing in LNG since 1969 and has an interest in 11 LNG export projects globally, many in conjunction with Shell. Diamond LNG Canada Ltd. is a wholly owned subsidiary of Mitsubishi Corporation.

About PetroChina Canada Ltd.

PetroChina Kitimat LNG Partnership is a wholly owned subsidiary of PetroChina Canada Ltd., an integrated oil and gas company, with interests in upstream, midstream and downstream operations in Alberta and British Columbia. Founded in 2010, PetroChina Canada Ltd. is a wholly owned subsidiary of PetroChina Company Limited, headquartered in Beijing, People’s Republic of China.

About Kogas Canada LNG Ltd.

Kogas Canada LNG Ltd.is a wholly owned subsidiary of Korea Gas Corporation, which is Korea’s only fully-integrated natural gas provider and one of the world’s largest LNG importers.

Enquiries:

Media
Shell Canada Media Relations: media-desk@shell.com
Shell International Media Relations: +44 (0) 207 934 5550

Investor Relations
International: +31 (0) 70 377 4540
North America: +1 832 337 2034

Cautionary note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Royal Dutch Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this release refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This release contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition’, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s Form 20-F for the year ended December 31, 2017 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, May 31, 2018. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this release.

We may have used certain terms, such as resources, in this release that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov

More in Media

Feature Articles

Read about our activities, partnerships and the innovative approach we take in helping to build a sustainable energy future

Speeches

Here you can access a selection of speeches and articles by Shell Canada’s leaders.