05/15/2012 02:25 EDT

Royal Dutch Shell Gas Proposal Comes To B.C.

CALGARY - Royal Dutch Shell PLC says it's proposing a liquefied natural gas project in Kitimat, B.C., alongside three Asian partners.

The Anglo-Dutch energy giant says it will have a 40 per cent stake in the project, called LNG Canada.

PetroChina, Mitsubishi Corp. and Korea Gas Corp. will each hold a 20 per cent interest.

Liquefied natural gas, or LNG, is gas that has been chilled into a liquid state, making it easier to transport to overseas markets by tanker.

Demand for the fuel is voracious in Asia, where natural gas fetches a price several times higher than it does in the oversupplied North American market.

Shell says LNG Canada will initially have two production units each producing six million tonnes of LNG per year.