Hague-based LNG giant Shell and its partners in LNG Canada have again decided to postpone a final investment decision (FID) on the proposed multi-billion dollar LNG export project in British Columbia.
The joint venture, whose stakeholders also include PetroChina, Mitsubishi Corporation and Kogas, said in a statement on Monday that “in the context of global industry challenges, including capital constraints,” the LNG Canada participants have determined “they need more time prior to taking a final investment decision.”
“At this time, we cannot confirm when this decision will be made,” the statement reads.
To remind, LNG Canada had originally planned to make its FID in the first half of this year. However, Shell’s CEO Ben van Beurden announced in February that the decision had been pushed to late 2016.
The LNG export project would initially consist of two 6.5 mtpa LNG production trains with an option to expand the facility with additional two trains.
In the coming weeks, LNG Canada will continue key site preparation activities and work with its joint venture participants, partners, stakeholders and First Nations to define a revised path forward to FID, the statement said.
“Our project has benefitted from the overwhelming support of the BC Government, First Nations – in particular the Haisla, and the Kitimat community. We could not have advanced the project thus far without it. I can’t say enough about how valuable this support has been and how important it will be as we look at a range of options to move the project forward towards a positive FID by the Joint Venture participants,” said Andy Calitz, CEO LNG Canada.
LNG World News Staff