Aurora LNG has backed out of a plan with Calgary-based Nexen to build a Liquefied Natural Gas plant in northwestern B.C., saying the current economy doesn't support its vision for a large operation on Digby Island.
It's another blow to the LNG industry that former premier Christy Clark promised would bring riches to B.C. during her provincial election campaign in 2013.
Of the 19 projects listed in April 2017 on the government's LNG site, this project was one of only three which seemed to be moving forward.
Now there is only the Woodfibre LNG proposal near Squamish and the WesPac marine terminal on Tilbury Island in Delta.
In a news release today Aurora and its partners Nexen Energy and INPEX Gas B.C. said they had made a "strategic decision" to end the feasibility study and cease all investigation activity immediately.
"The current macro-economic environment does not currently support the partners' vision of developing a large LNG business," said the release.
The $20-billion deal to buy the Digby Island site was aimed at eventually shipping 24 million tonnes of LNG product from B.C. to Asia every year.