At the same time, output from older projects is set to decline in coming years, just as soaring demand from China, India and Southeast Asia is devouring a supply glut previously expected to last for years, fanning fears that an LNG shortage may be looming.
"With the extraordinary steps LNG Canada is taking to build a state-of-the-art LNG processing plant and partner with First Nations, this project can be made real as we meet our climate protection goals and recognize Indigenous rights". "It seems that mega-projects are back".
Horgan's minority NDP government only governs because of the support of the Green party.
The B.C. government said in a statement that the construction of a natural-gas pipeline from Dawson Creek in northeast B.C.to Kitimat, where a new terminal will process and ship LNG, will generate $24 billion of direct investment.
"Today, a few dreams are realized", Andy Calitz, the CEO of LNG Canada, said as he announced the company's decision. Selling LNG to buyers in Asia promises higher prices for the country's gas compared to what it gets selling it nearly exclusively to the USA via pipeline.
LNG Canada will receive PST exemption during construction, get a break in paying industrial electricity rates instead of LNG rates from BC Hydro, and the province repealed the LNG-specific income tax introduced by the previous Liberal government.
The final approval for the project comes after multiple delays over several years due to changes in world natural gas prices.
As a result of the project, the report said, "LNG Canada will be able to send cargoes from Kitimat, British Columbia to Tokyo in about eight days versus 20 days from the US Gulf".
Pipeline operator TransCanada Corp said on Tuesday it will proceed with construction of its Coastal GasLink pipeline, which will transport natural gas from the Montney gas-producing region near Dawson Creek, British Columbia, to the LNG Canada facility. The project includes a consortium with "deep LNG industry experience", she said.
Business interests have placed increasing pressure on Finance Minister Bill Morneau and other officials to improve Canadian competitiveness, through tax cuts, regulatory changes and other measures, arguing that Canada is gradually losing its advantage over US firms.
Shell said the majority of its equity share would come from its Groundbirch asset in north-east British Columbia, or it could buy gas from the market, depending on which option provided the most value.
"Beyond this, we believe this project has the potential to be the first of many on the West Coast of Canada", if Canadian LNG follows the global standard, being that LNG export areas tend to be "hubs" of terminals, rather than standalone facilities", they wrote.
"We like this announcement which when complete will double the number of export partners Canada has for natural gas (from one to two) and provide an incremental 1.8 billion cubic feet per day of takeaway capacity", National Bank Financial analysts wrote in a research note. And the power supply agreements - B.C. Hydro will supply some clean power to the project - are up and running.
With prices nearly tripling from 2016 lows to over $11 per million British thermal units (mmBtu) as demand gathers steam, the industry has regained confidence and is preparing to invest in new projects again.