The World''s Biggest LNG Project Moves Forward

With one high-profile developer in the latter region taking "a great step forward" in realizing exports from the burgeoning Canadian sector.

That's Royal Dutch Shell. Leader of the "LNG Canada" consortium that's seeking to develop an LNG export project at Kitimat, British Columbia. In concert with heavyweight partners PetroChina, Korea Gas, and Mitsubishi.

The consortium announced that it has selected a contractor for construction of the proposed $10 billion liquefaction terminal here. With a group led by Japan's Chiyoda Corp--and also including Foster Wheeler, Saipem, and WorleyParsons--getting the nod.

The enthusiasm is warranted. LNG exports from western Canada are projected to be cheaper than U.S. Gulf Coast shipments by a few dollars per mmbtu of gas. And those savings could give projects here a leg up in the race to sell cheap North American gas into Asian markets.

We'll see if projects like LNG Canada's do indeed get the green light over the coming months.

(oilprice.com Edited by Topco)