LNG Canada decision delayed due to global industry challenges
July 11 (Reuters) – Royal Dutch Shell Plc and its LNG Canada partners have once again pushed back the timing of a decision on building a British Columbia liquefied natural gas export (LNG) terminal, the latest setback for the Canadian province’s energy ambitions.
LNG Canada, whose participants also include PetroChina Co Ltd, Mitsubishi Corporation and Kogas, cited global industry challenges, including capital constraints, for requiring more time prior to making a final investment decision.
The proposed project, which would be located on British Columbia’s rugged northern coastline, was one of the front runners in a now slowing race to build Canada’s first LNG export terminal.
The venture had originally planned to make its final investment decision in the first half of 2016. In February it pushed the deadline to the end of the year.
In its statement on Monday, the group said they could not confirm when the decision would be made.
Last month, Canada’s environmental regulator said it resumed its review of a separate Petronas-led LNG project. The agency has three months to complete its review of that proposal, and Canada’s ruling Liberals have separately committed to announcing their final decision by the end of September
LNG prices are sinking as demand for the super-chilled gas slows and new supply from the United States, Australia and Russia is set to hit the market through 2021.
Despite the near-term glut, Shell executives have said they anticipate demand from China and other countries to increase through the next decade.
(Reporting by Rama Venkat Raman in Bengaluru; Editing by Jeffrey Hodgson)