Premier Christy Clark

LNG Canada latest to delay investment

Shell-led group with Korea Gas, Mitsubishi and PetroChina can't say when its decision on Kitimat project will come

A consortium led by Shell Canada with support of the Haisla Nation to build a liquefied natural gas export facility near Kitimat is the latest LNG investment to delay proceeding.

LNG Canada announced Monday it would delay indefinitely its decision to proceed beyond 2016. The group started engineering work in 2014, supported by Shell, Korea Gas, Mitsubishi of Japan and PetroChina as venture partners.

The latest delay in piping northeast B.C. gas to the coast for export is a blow to the Peace region, where exports to the U.S. have been replaced by new domestic sources of gas. Oil production increases in the Middle East have driven down the world price of oil, taking gas with it as producers multiply.

LNG Canada CEO Andy Calitz said the partnership remains a “promising opportunity.” and will continue site preparation. It has “important commercial and engineering contracts in place to build the project” and an agreement with TransCanada to construct pipelines to the B.C. Coast.

When the joint venture was announced in 2014, Calitz said there are three key factors in deciding whether to commit to the Kitimat project. They are shifts in the gas price in Asia, the supply and cost of labour to build the plant and pipelines, and construction of gas pipelines through the Rocky Mountains.

 

Just Posted

UPDATE: Tsunami warning ended for Greater Victoria

Homes in Colwood near Esquimalt Lagoon were evacuated after tsunami warning for coastal areas of B.C. after 7.9 earthquake off Alaskan coast

Greater Victoria under another wind warning this morning

Strong southeast winds will reach speeds of up to 80 km/h in Greater Victoria

UPDATE: Tsunami warning cancelled for coastal British Columbia

Warning issued following 7.9 earthquake off Kodiak, AK

Tsunami warning issued for Coastal B.C.

It is recommended that individuals residing below 20 metres should move to higher ground.

Federal, provincial ministers in Victoria to announce clean tech funding

Collaboration will invest $785,000 into start-ups, including Victoria-based Alacrity Canada

Testing the Google Arts & Culture app

Going face to face with art

‘Shape of Water’ producer, Christopher Plummer among Canadian Oscar nominees

Guillermo del Toro film about merman romance earns 13 nominations

Canada, TPP agrees to revised deal without the United States

Canada and the remaining members of the Trans-Pacific Partnership have agreed to a revised trade agreement

Tsunami warnings 101: Canada

Here are some things to know about tsunami alerts in Canada and how they work

Rogers Media cuts ties with Vice Canada

Rogers Media and Vice Canada are ending their three-year-old partnership, pulling Viceland TV channel off the air

Tsunami warning prompts evacuations in Port Alberni

Alaska earthquake prompted warning for coastal BC

VIDEO: Fuel truck and train collide in B.C. causing massive fire

More emergency crews are still arriving on scene of a massive fire at the Port Coquitlam rail yard.

Back to work: U.S. government shutdown ends after Democrats relent

Short-term spending measure means both sides could see another shutdown stalemate in three weeks

Most Read