Anglo-Dutch energy giant Shell and its partners have finally given the green light to an enormous liquified natural gas project in Canada.

Shell has a 40% interest in LNG Canada and the remaining shares are held by Malaysia’s Petroliam Nasional, Mitsubishi, PetroChina and Korea Gas. Construction will start immediately, with the first LNG expected before the middle of the next decade, Shell said.

‘We believe LNG Canada is the right project, in the right place, at the right time,’ said Shell’s chief executive Ben van Beurden.  ‘Supplying natural gas over the coming decades will be critical as the world transitions to a lower carbon energy system.’

LNG Canada is expected to deliver Shell an integrated internal rate of return of some 13%, while the cash flow it generates is expected to be ‘significant, long life and resilient,’ Van Beurden said.