Shell ends development of Prince Rupert LNG project
Company still considering its other West Coast LNG option
Royal Dutch Shell said Friday it is ending development of the proposed Prince Rupert liquefied natural gas project in British Columbia but is still considering the potential of its other West Coast LNG option.
Shell acquired the Prince Rupert LNG as part of a portfolio of projects in its takeover of natural gas giant BG Group last year, but said it decided to discontinue the project after reviewing how it stacked up against its existing options.
The company said it continues to actively move forward on the proposed Kitimat, B.C.-based LNG Canada project with its partners, though last year it indefinitely deferred a final investment decision on it because of market conditions.
LNG expectations have taken a hit in recent years as the global markets have been flooded by supply.
Shell, however, said it still sees the LNG Canada project as an opportunity to bring Canadian gas resources to a global LNG market, where it expects to see a growth rate of between four and five per cent between 2015 and 2030.
The news comes a day after Shell said it was selling off much of its oilsands holdings for $8.5 billion to Canadian Natural Resources as it continues to reshape its global portfolio more towards natural gas in the wake of the BG Group deal.