Royal Dutch Shell and its partners have delayed a final investment decision (FID) on a $40bn liquefied natural gas (LNG) project in British Columbia, Canada, due to a global fall in natural gas prices.
LNG Canada’s joint venture (JV) participants are Shell (50%), PetroChina (20%), Mitsubishi (15%) and Kogas (15%).
The final investment decision on the project was initially planned for the end of this year.
LNG Canada CEO Andy Calitz said: “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.”
The JV participants said they need more time before taking a final investment decision in the context of global industry challenges, which also include capital constraints.
Meanwhile, LNG Canada plans to continue with key site preparation activities and work with its JV participants, partners and stakeholders, as well as First Nations to define a revised path.
The proposed project will process natural gas from Encana’s Cutbank Ridge Partnership in the South Peace for export to Asia, and is expected to create 7,500 jobs at the time of construction, The Mirror reported.
In January this year, the BC Oil and Gas Commission (OGC) issued an LNG facility permit for the project.
The project will involve construction of an LNG export facility that initially comprises two LNG trains, each with the capacity to produce 6.5 million tonnes per annum of LNG.
Image: LNG Canada project received facility permit in January this year. Photo: courtesy of LNG Canada.
