LNG Canada pulls back on $40 billion British Columbia project
Energy giant Shell has pushed back the timing of a decision on building a British Columbia liquefied natural gas export (LNG) terminal, a project said to be worth around $40 billion in terms of construction costs.
LNG Canada has announced that its joint venture participants – Shell, PetroChina, Mitsubishi Corporation and Kogas – have decided to delay a final investment decision on LNG Canada that was planned for end 2016.
"Our project has benefitted from the overwhelming support of the BC Government, First Nations – in particular the Haisla, and the Kitimat community. We could not have advanced the project thus far without it. I can’t say enough about how valuable this support has been and how important it will be as we look at a range of options to move the project forward towards a positive FID by the Joint Venture participants," said Andy Calitz, CEO LNG Canada.
A statement from LNG Canada continued: "Through their efforts to build a strong LNG sector for Canada, and a critical, cleaner energy alternative for the world, the governments of British Columbia and Canada have developed sound fiscal and regulatory frameworks for success. However, in the context of global industry challenges, including capital constraints, the LNG Canada Joint Venture participants have determined they need more time prior to taking a final investment decision. At this time, we cannot confirm when this decision will be made. In the coming weeks, LNG Canada will continue key site preparation activities and work with its joint venture participants, partners, stakeholders and First Nations to define a revised path forward to FID."
LNG Canada Joint Venture Participants are Shell (50 percent), PetroChina (20 percent), Mitsubishi Corporation (15 percent) and Kogas (15 percent).
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