Kitimat is a community of about 8,000 people located on the north coast of British Columbia. The community sits at the head of Douglas Channel next to Kitimat River. The community was developed in the 1950s to serve the aluminum industry. Over the years forestry and methanol industries also located here. Recently the LNG industry has been making significant investments in the area towards potential large export projects, one that was just approved October 1, 2018 by LNG Canada. As a result, heavy industry is the main employer in Kitimat.
Why should I invest in the Kitimat Region?
Until recently, the name Kitimat conjured up a little-known town with a population of less than 9,000 in NorthWest BC. But today, Kitimat is a town known around the globe for one thing: the single largest private sector investment in Canadian history.
On October 1, 2018, LNG Canada announced that its joint venture participants – Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS – have taken a Final Investment Decision (FID) to build the LNG Canada export facility in Kitimat, British Columbia. LNG Canada is a $40-billion LNG project that will see a 670-kilometre pipeline carrying natural gas from Dawson Creek to a terminal in Kitimat, where it will be liquefied for export. In the beginning, about 14 million tonnes will be shipped out every year. The project has the approval of the National Energy Board, Department of Fisheries and Oceans, BC Hydro and 25 First Nations. As a result of global commitments to reduce greenhouse gas emissions and improve air quality, demand for LNG expected to double by 2035 compared with today.
Western Investor recently named Kitimat the #1 Best Investment Town in Western Canada.
“LNG Canada confirmed it would proceed with the $40 billion liquefied natural gas (LNG) terminus and pipeline network that will change Kitimat forever.
It will also likely change the fortunes of those real estate investors quick enough to get into town. Despite work camps springing up to house the estimated 6,000 construction workers, the real estate play in Kitimat is residential rentals.”
– October 29, 2018, Western Investor
With the announcement of LNG Canada’s $40 billion project, everyone is looking to participate in the pending economic boom, whether they’re an energy worker, a contracting company, a product supplier, a facilities service company, or an individual real estate investor. The opportunity is enormous for many with an estimated 10,000 workers required to complete this five year construction project.
“Between the plant and the pipeline, approximately 10,000 people will be employed during construction.
Natural gas will find a new market, helping Asian countries with the transition from coal to LNG.
To limit the impact of a large influx of people on the Kitimat community, LNG Canada is building Cedar Valley Lodge – a workforce accommodation centre adjacent to work site, which can house up to 7500 people in single room accommodation.
Construction is estimated to take approximately five years, JGC Fluor is the engineering, procurement and construction consortium LNG Canada selected to construct the plant.
While construction will begin immediately, a relatively small number of workers will be required at the beginning, with ramp up to a larger workforce beginning in about 18 months from FID.”
LONG TERM OUTLOOK:
The initial plan for construction at the LNG Canada plant is for 2 trains (processing unit for the natural gas). The future plan is for up to 4 trains, thereby doubling capacity. Upon completion of the plant, there are an estimated 950-1,000 permanent jobs created which will change the 8,000 person town dramatically.
In addition, three other LNG facilities are also under development, aiming to ride in on LNG Canada’s coattails. This includes Chevron’s proposed facility which, if approved, could bring a further decade of development in the LNG industry to Kitimat.