Japan-based oil refining company Idemitsu Kosan’s joint venture with Canada’s AltaGas plans to halt a liquefied natural gas (LNG) project in northern British Columbia, citing low energy prices.
Idemitsu said that work on the Triton LNG project would continue in case energy prices recover.
The company also suspended all efforts to export LNG from North America.
Earlier, Idemitsu and AltaGas had carried out a feasibility study to export about two million tonnes per year of LNG to Asia from Canada’s west coast in 2017.
Reuters quoted Idemitsu Kosan treasury department executive officer and general manager Toshiaki Sagishima as saying that the venture may not make a commitment on the development of the project if the current LNG prices continue into the future.
Triton is expected to export about 2.3 million tonnes of LNG per year to Asia.
Earlier in February 2016, AltaGas and Idemitsu suspended development of the Douglas Channel LNG project on British Columbia’s Pacific coast due to weak market conditions.
Due to this, the companies could not achieve a final investment decision on the project.
Douglas has been designed to have a capacity of 550,000t per year.
AltaGas director of finance and communications Jess Nieukerk told NEWS1130 that the company’s focus is on the Douglas project.
