April 12 (Reuters) - Royal Dutch Shell Plc, Mitsubishi Corp, China National Petroleum Corp and Korea Gas Corp are in the final stages of negotiations to build a $12.35 billion liquefied natural gas (LNG) terminal on Canada’s west coast, the Nikkei reported.
The companies will ship gas from their Canadian fields for the project and expect to begin production around 2020 at an annual rate of 12 million tons, the daily said.
The terminal, near Kitimat, British Columbia, will cost more than 1 trillion yen, the Nikkei said.
Stakes in the joint venture have not been decided, but a broad agreement is expected as early as this month, after which the four companies will start seeking approval from local authorities, the daily said.
With production of gas on the rise in North America, an alliance among Japanese, South Korean and Chinese firms and an energy major is expected to stabilize import prices in Asia, the business daily said.