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

Port McNeill Volunteer Fire Department appoints deputy chief

Port McNeill Fire Chief Dean Tait has appointed 10+ year firefighter veteran… Continue reading

Port McNeill in Focus: Childcare Availability Crisis a Good News/Bad News Story

On average, childcare across the country is unavailable, unaffordable, and the quality varies.

Notice of change of operator for Mount Waddington transit services

The Regional District of Mount Waddington (RDMW) and BC Transit have received… Continue reading

Is Steve Nash Vancouver Island’s best athlete of all-time?

As Captain Canada gets ready to enter basketball’s Hall of Fame it’s time to debate his legacy

Who is Vancouver Island’s greatest athlete ever?

We want to know, you get to choose in a 64-athlete tournament bracket

VIDEO: Canadian Forces help flood-ravaged Grand Forks residents heal

Sgt. Bradley Lowes says the military is used to dealing with traumatic times

Friends and family playing huge role in search for Vancouver Island man

Volunteers from the public join forces with SAR crews

Chilliwack Chiefs make history with first RBC Cup win

In front of a huge and noisy crowd, the Chiefs claimed their first-ever national junior A title.

Central Vancouver Island man dies in single-vehicle collision

Pickup truck with three occupants went off the road near Port Alberni

UPDATED: Majority of flood evacuees in Kootenay-Boundary allowed to return home

Officials hope to have all 3,000 people back in their homes by Monday night

B.C. Lions bring back 6-time all-star offensive lineman Jovan Olafioye

He was acquired by the Montreal Alouettes last year.

Whitecaps rally for 2-2 draw with FC Dallas

Vancouver climbed out of a two-nil hole to tie FC Dallas 2-2

B.C. VIEWS: Making sense of climate policy

Flood and fire predictions have poor track record so far

Chilliwack Chiefs moving on to RBC Cup final after thrilling win over Ottawa

Kaden Pickering scored the winning goal in the 3rd period as Chilliwack won their semi-final 3-2.

Most Read