Korea Gas to Sell Down Part of Stake in Canadian LNG Project

Korea Gas Corp, one of the world's top liquefied natural gas buyers, is looking to sell down some of its stake in the up to C$40 billion ($35.6 billion) LNG Canada project, a spokeswoman for the project said.

 

"We are aware that KOGAS is investigating divesting some of its share interest in LNG Canada," Katharine Birtwistle said in an email to Reuters late on Thursday. "LNG Canada remains committed to working together to move the proposed project forward."

 

Korea Gas currently owns a 15 percent stake in the project, which is expected to cost between C$25 billion and C$40 billion to build to its full capacity, making it one of the costliest projects ever proposed in Canada.

 

Royal Dutch Shell is the operator of the project and owns 50 percent, while PetroChina Co Ltd holds 20 percent and Mitsubishi Corp owns the final 15 percent.

 

A spokesman for Korea Gas was not immediately available for comment.

 

The LNG Canada project, which would liquefy natural gas in Kitimat, British Columbia for export to Asian markets, is now undergoing an environmental review. After a final investment decision, construction is expected to take four to five years.