LNG Canada CEO Andy Calitz announces project proceeding to engineering and environmental assessment

LNG Canada CEO Andy Calitz announces project proceeding to engineering and environmental assessment

Shell postpones LNG decision to late 2016

Shell, Mitsubishi, Korea Gas and PetroChina agree to stick with Prince Rupert project despite world-wide oil and gas price slump

With a world-wide slump in oil and natural gas prices extending further than expected, the Shell-led liquefied natural gas project proposed for Kitimat has delayed its final investment decision until the end of the year.

Backed by a consortium of Shell Canada, Korea Gas, Mitsubishi and PetroChina, the LNG Canada project is a key part of the B.C. government’s bid to enter the global LNG export market. Along with delays on the Petronas-led Pacific Northwest LNG proposed for Prince Rupert, the chances of a large LNG project being under construction by the 2017 provincial election have faded.

Premier Christy Clark was attending an industrial development conference in Ottawa when the delay was revealed in Shell’s quarterly update. As with other global energy companies, the glut of oil resulted in a 44 per cent in earnings for Shell compared to the same quarter last year.

Clark, who rode the prospect of an LNG revenue bonanza to victory in the 2013 B.C. election, acknowledged that the delay is significant.

“What I was pleased to see, though, is that Shell has reconfirmed its intention to make a final investment decision this year, even in these very uncertain times,” Clark said.

LNG Canada CEO Andy Calitz was attending the same conference and he noted that the delay means all four international partners have agreed to stay with the project.

“LNG Canada is in great shape as a project,” Calitz said. “We have all our federal and provincial environmental approvals in place, and the National Energy Board recently decided that they support a 40-year export licence.”

Related: NDP MP seeks tax break for Douglas Channel LNG

Another factor in the delay is the ongoing Shell takeover of British Gas Group, which had its own proposal to build a pipeline and LNG terminal in the Prince Rupert area.

LNG Canada has an agreement with TransCanada Corp. to build a pipeline through the Rocky Mountains from northeastern B.C., where Shell and others have major gas drilling operations in the Montney shale near Dawson Creek and other gas-rich formations.

Pacific Northwest LNG is still waiting for its federal environmental permit, after redesigning its LNG tanker port proposed for Lelu Island near the Prince Rupert port. Local protests have dogged the project over its potential impact on salmon in the Skeena River.

 

Just Posted

The Binche Fishing Derby at Stuart Lake is fast approaching. (Binche Fishing Derby Facebook photo)
Binche shares excitement for upcoming fishing derby

“It’s more than just fishing,” says Dave Birdi

A person receives a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. (THE CANADIAN PRESS/Jonathan Hayward)
Local youth vaccination clinics underway

Pfizer vaccine will be used

Priya Sharma. (Submitted)
Column: Why ultimatums don’t work

By Priya Sharma It is a common misconception that people can choose… Continue reading

A small pod of Pacific white-sided dolphins pass by close to shore in Campbell River June 16, 2021. Still capture from video courtesy of Kimberly Hart
VIDEO: Dolphin sunset captured from Vancouver Island shore

Spectacular setting for view of travelling pod of Pacific white-sided dolphins

Police are asking for public assistance in locating Anthony Graham who has been charged with the murders of Kamloops brothers Carlo and Erick Fryer. (RCMP photo)
2 charged, suspect at large in killings of B.C. brothers linked to gang activity: RCMP

Kamloops brothers Erick and Carlo Fryer were found deceased in May on a remote Okanagan road

Albert Health Minister Tyler Shandro and Alberta Premier Jason Kenney unveil an opening sign after speaking about the Open for Summer Plan and next steps in the COVID-19 vaccine rollout, in Edmonton, Friday, June 18, 2021. THE CANADIAN PRESS/Jason Franson
Alberta 1st province in Canada to lift all COVID-19 public health restrictions

70.2% of eligible citizens 12 and older in the province have received a dose of the vaccine

Fraser Health registered nurse Ramn Manan draws a dose of the Pfizer COVID-19 vaccine into a syringe at a walk-up vaccination clinic at Bear Creek Park, in Surrey, B.C., on Monday, May 17, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Honour our fathers’ with COVID-19 vaccine protection, B.C. urges

109 new cases Friday, 75 per cent of 12 and up immunized

(Paul Henderson/ Chilliwack Progress)
Trutch Avenue in Chilliwack to be renamed to remove racist taint

New name to have Indigenous significance as Chilliwack takes new step toward reconciliation

Canadian Prime Minister Justin Trudeau is seen during a joint news conference following the EU-Canada Summit, in Brussels, Belgium, Tuesday June 15, 2021. Trudeau says Canada is on track now to have 68 million doses delivered by the end of July, which is more than enough to fully vaccinate all 33.2 million Canadians over the age of 12. THE CANADIAN PRESS/Adrian Wyld
Vaccine deliveries enough to fully vaccinate all eligible Canadians by end of July

Three in four eligible Canadians now have their first dose, nearly one in five fully vaccinated.

Chief Public Health Officer Theresa Tam listens to a question during a news conference, in Ottawa, Tuesday, Jan. 12, 2021. The number of confirmed COVID-19 cases attributed to the highly contagious Delta variant grew in Canada this week. THE CANADIAN PRESS/Adrian Wyld
Canada’s public health agency reports spike in confirmed cases of Delta variant

More than 2,000 cases of the variant confirmed across all 10 provinces and in one territory

Bella Bella is on B.C.’s Central Coast, accessible only by air and ocean. (Tom Fletcher/Black Press)
B.C. provides $22 million for Heiltsuk development on Central Coast

Elders care home project, tourism, lumber mill supported

Most Read