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Shell buys potential LNG plant site in Kitimat

British Columbia is now one step closer to building its first liquefied natural gas plant. The Vancouver Sun reports that Shell has purchased the old Methanex plant from Cenovus in Kitimat, along with its Asian partners Mitsubishi Corp., Korea Gas Corp. and Chinese National Petroleum Corp.

Shell is now exploring the potential of turning it into an LNG site for shipment to Asia..

This is now the third proposal for an LNG plant in Kitimat, and is the biggest plan to date. KM LNG already has a license to ship LNG to Asia, and has begun building a plant at Bish Cove, 15 kilometres south of Kitimat.

Another proposal by the Haisla First Nation and LNG Partners of Houston, Texas is also in the works.

Shell did not reveal to the Vancouver Sun the size or the cost of the terminal, but it is rumoured to be planning to ship two million cubic feet a day.

Cenovus purchased the terminal last November, and has been using it to ship a type of light oil to Alberta. It will continue to be used to unload and transfer the product for the time being.

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