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

B.C’s salmon advisory council skips Terrace

Public engagement tour excludes all non-coastal communities

Great kids doing great things for Houston

Members of the Houston Minor Hockey and the Houston Ringette canvassed the… Continue reading

Owners of mining project south of Houston allowed to drill again

New Nadina’s free miners certificate had been suspended in September

Council seeks to replace By-Mac Park’s boat launch

The boat launch is currently unusable; district has received several complaints

Houston residents raise concerns over “dangerous” street corner

“Pedestrians casually cross the road on blind corners,” says local resident

Omar Khadr wants changes to bail conditions

‘My life is held in suspension’, says the former Guantanamo Bay detainee

Sissons scores OT winner as Predators beat Canucks 4-3

VIDEO: Vancouver battles back to earn single point in Nashville

Lions announce seven members of coaching staff not coming back for 2019

The operational moves come two days after the Lions announced DeVone Claybrooks as the team’s new head coach

$12K awarded to atheist family who oppose Christmas, Hanukkah in B.C. classroom

Gary Mangel,May Yasue said holidays, Remembrance Day and Valentine’s Day not appropriate in preschool

Coach accused of sexual assault says apology letter was misinterpreted

Dave Brubaker has pleaded not guilty to one count of sexual assault and one count of invitation to sexual touching

Give the gift of nature this holiday season

Please don’t be mad, but I bought you a moose

Aboriginal poet faces backlash for calling out NHL-themed totem poles

Rebecca Thomas says she received backlash for asking a drugstore chain to remove NHL merchandise

No plans yet for free WiFi on BC Transit buses

BC Transit says they are monitoring the roll-out of free WiFi on Translink vehicles

Some Kotex tampons recalled in Canada and U.S.

In some cases, tampon users sought medical attention “to remove tampon pieces left in the body.”

Most Read