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in piping northeast B.C. gas to the coast for export is a blow to the Peace region, where exports to the U.S. have been replaced by new domestic sources of gas.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

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

South Okanagan real estate market adjusting to ‘new normal’

Numbers are up in March; however, industry insiders say the market has cooled

Serious assault leaves Osoyoos woman in critical condition: RCMP

A 60-year-old Osoyoos woman suffers life threatening injuries following assault inside home

Not all receive COVID-19 aid from federal government

Summerland woman does not qualify for federal assistance during COVID-19 pandemic

Pair of Penticton Vees forwards eye NHL Entry Draft

Danny Weight and Ryan McGuire included in Central Scouting’s final draft rankings

Law enforcement will patrol shuttered campgrounds in Cascades this weekend

Patrols will enforce provincial order requiring all such facilities remain closed during COVID-19

COVID-19 death toll reaches 50 in B.C., while daily case count steadies

B.C. records 34 new cases in the province, bringing total active confirmed cases to 462

Public warned to stay away from algae bloom near Herald Park in Shuswap Lake

Interior Health states that people, pets should not drink the water in the area or touch the algae

B.C. unveils $5M for mental health supports during the COVID-19 pandemic

Will include virtual clinics and resources for British Columbians, including front-line workers

South Shuswap residents criticize upgrades to Balmoral Road/Highway 1 intersection

Reliance on frontage roads and narrow underpasses near Blind Bay not good enough

B.C.’s COVID-19 rent supplement starts taking applications

$300 to $500 to landlords for April, May and June if eligible

COVID-19: No more international flights at Kelowna International Airport

All international flights at YLW have been suspended, airport to operate just nine flights a day

B.C.’s top doctor details prescription for safe long weekend

Yes, it includes hosting an online cooking show

BC SPCA seeks help for abandoned German shepherd puppies

Donations have ‘petered out’ as doors are closed due to COVID-19

Reality TV show about bodybuilders still filming in Okanagan amid COVID-19

Five bodybuilders from across the country flew to Kelowna to move into a house for a reality TV show

Most Read