LNG player BG Group said it will put its plans for the Prince Rupert LNG project in British Columbia on halt.
The company intends to wait and follow the development of the LNG market before making its final decision.
BG said that the forecasts of close to 90 million tons per year of LNG from the US, coupled with weakness in gas pricing generally indicate that the market will be very well supplied post 2020.
Andrew Gould, BG’s interim Executive Chairman revealed at BG’s third-quarter conference call that the company will pause on Prince Rupert.
“We are not abandoning Prince Rupert, we’re pausing on Prince Rupert to see how the market evolves particularly in function of total supply that will come out of the US,” said Gould.
Gould added that BG will continue to work on the project, although not in the same capacity as it was in 2014.
The LNG facility on Ridley Island near Prince Rupert will be developed in two phases with a production capacity of up to 21 million tonnes.
LNG World News Staff; Image: BG