LNG Canada CEO Andy Calitz announces project proceeding to engineering and environmental assessment

Shell postpones LNG decision to late 2016

Shell, Mitsubishi, Korea Gas and PetroChina agree to stick with Prince Rupert project despite world-wide oil and gas price slump

With a world-wide slump in oil and natural gas prices extending further than expected, the Shell-led liquefied natural gas project proposed for Kitimat has delayed its final investment decision until the end of the year.

Backed by a consortium of Shell Canada, Korea Gas, Mitsubishi and PetroChina, the LNG Canada project is a key part of the B.C. government’s bid to enter the global LNG export market. Along with delays on the Petronas-led Pacific Northwest LNG proposed for Prince Rupert, the chances of a large LNG project being under construction by the 2017 provincial election have faded.

Premier Christy Clark was attending an industrial development conference in Ottawa when the delay was revealed in Shell’s quarterly update. As with other global energy companies, the glut of oil resulted in a 44 per cent in earnings for Shell compared to the same quarter last year.

Clark, who rode the prospect of an LNG revenue bonanza to victory in the 2013 B.C. election, acknowledged that the delay is significant.

“What I was pleased to see, though, is that Shell has reconfirmed its intention to make a final investment decision this year, even in these very uncertain times,” Clark said.

LNG Canada CEO Andy Calitz was attending the same conference and he noted that the delay means all four international partners have agreed to stay with the project.

“LNG Canada is in great shape as a project,” Calitz said. “We have all our federal and provincial environmental approvals in place, and the National Energy Board recently decided that they support a 40-year export licence.”

Related: NDP MP seeks tax break for Douglas Channel LNG

Another factor in the delay is the ongoing Shell takeover of British Gas Group, which had its own proposal to build a pipeline and LNG terminal in the Prince Rupert area.

LNG Canada has an agreement with TransCanada Corp. to build a pipeline through the Rocky Mountains from northeastern B.C., where Shell and others have major gas drilling operations in the Montney shale near Dawson Creek and other gas-rich formations.

Pacific Northwest LNG is still waiting for its federal environmental permit, after redesigning its LNG tanker port proposed for Lelu Island near the Prince Rupert port. Local protests have dogged the project over its potential impact on salmon in the Skeena River.

 

Just Posted

Feds kickstart Indigenous Guardians program with $5.7M in early funding

Part of $25M announcement from March to commit financial help for First Nations to remain stewards of their land

NDP leader Jagmeet Singh visits with Langford high school students

Students asked him questions about current political issues

New report finds B.C. victims of opioids crisis on lower of end of socio-economic spectrum

UVic scholar calls for decriminalization of drugs responsible for opioid crisis

Victoria Curling Club, arena parking lot considered for new Crystal Pool location

Considering other vendors could cost Victoria first year of provincial and federal funding

City of Victoria to see 588 affordable housing units

Provincial funding is aiming to see 4,900 new mixed-income rental properties across B.C.

VIDEO: Amazon to split second HQ between New York, Virginia

Official decision expected later Tuesday to end competition between North American cities to win bid and its promise of 50,000 jobs

Kuhnhackl scores 2 odd goals as Isles dump Canucks 5-2

Vancouver drops second game in two nights

Student arrested at Vancouver Island elementary school

Pupils never in danger, incident unrelated to the school

POLL: Have BC Ferry waits ever forced you to cancel your travel plans?

Many BC Ferry passengers heading out from Swartz Bay to Tsawwassen on… Continue reading

Stink at B.C. school prompts complaints of headaches, nausea

Smell at Abbotsford school comes from unauthorized composting operation

Fear of constitutional crisis escalates in U.S.; Canadians can relate

Some say President Donald Trump is leading the U.S. towards a crisis

Racist slur cleaned off memorial at Qualicum First Nation graveyard

Site was hit by vandals on Friday; many immediately offered support and assistance

B.C.-based pot producer Tilray reports revenue surge, net loss

Company remains excited about ‘robust’ cannabis industry

Canada stands pat on Saudi arms sales, even after hearing Khashoggi tape

Khashoggi’s death at Saudi Arabia’s consulate in Istanbul further strained Riyadh’s already difficult relationship with Ottawa

Most Read