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

Mad Hatter’s Ball offers laughs in support of Boys and Girls Club

Annual fundraising event features improv performances at McPherson Playhouse May 24

Carbon dioxide at highest levels for over 2.5 million years, expert warns of 100 years of disruption

CO2 levels rising rapidly, now higher than at any point in humanity’s history

SidFest 7 ready to rock the Mary Winspear Centre

The Bankes Brothers and Madrona Drive headlining May 24 concert

Penelakut filmmaker Steve Sxwithul’txw finds success in film and TV

Cop-turned-storyteller reaches back to his past for Tribal Police Files

Choir offers a capella take on Beatles hits

Soundings will perform concerts in Oak Bay and Sidney May 24 and 25

VIDEO: Horseshoe pitching association appeals to Greater Victora youngsters

Youth horseshoe pitching club offers fun for all ages, says GVHPA

Update: Mother dead, child in critical condition after carbon monoxide poisoning at Shuswap campground

The woman was found unresponsive insider her tent and the youth was taken via air ambulance to hospital

Canada’s parole officers say correctional system has reached breaking point

About half of Canada’s federal parole officers work inside penitentiaries and correctional institutions

Montreal researchers create audible hockey puck for visually impaired players

Three years ago, Gilles Ouellet came up with the idea for a puck that makes a continuous sound

Vancouver Island MusicFest: ‘House bands’ from the golden age of rock and R&B

Some of America’s greatest session musicians are coming to the Comox Valley this summer

Former B.C. Greyhound bus drivers head to Penticton for goodbye party

Big bash runs until Sunday, funded by drink cans left behind on busses over the years

Boy, 12, arrested after allegedly pulling a knife on another child at a Surrey park

The child was later released into his parents’ custody as Surrey RCMP continue their investigation

Full-scale search underway for missing kayaker on Okanagan Lake

Kelowna Paddle Centre member Zygmunt Janiewicz, 71, failed to return from his ‘daily kayak’ on the lake

Bucks hammer Raptors 125-103 to take 2-0 playoff series lead

Toronto heads home in a hole after second loss to Milwaukee

Most Read