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in piping northeast B.C. gas to the coast for export is a blow to the Peace region, where exports to the U.S. have been replaced by new domestic sources of gas.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 causes evacuations, closures throughout North Coast

Emergency BC issued the warning after a 7.9 earthquake off Alaska early Tuesday morning

Senior boys make it to the finals in Victoria

The Senior Rainmakers went 3-1 against the provinces top AAA and AAAA squads

Raiders claim the crown in Terrace

The Prince Rupert Adventure Paving Raiders went 3-0 in the Terrace Classic

Kaien Anti-Poverty Society robbed again

The Prince Rupert society was robbed of food for a second time this month

Cause of Kitkatla seaplane crash released

TSB report on seaplane crash during a water landing in May 2016, Inland Air has since changed policy

Testing the Google Arts & Culture app

Going face to face with art

Carriers wanted for the Northern View

We have open routes for carriers all over Prince Rupert

Man faces 48 charges in string of random Toronto shootings

The string of unprovoked shootings began Jan.9, say police

‘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

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.

Most Read