Shell cutting costs, to delay decisions on LNG Canada

UPDATE: In a statement to CKNW, LNG Canada CEO Andy Calitz says they’re still workings towards a Final Investment Decision for their proposed facility later this year.

That contradicts earlier reports that Royal Dutch Shell announced a postponement for the northern B.C. project, following a 44 per cent dip in fourth-quarter earnings.

It was only a month ago Shell had obtained a permit to build an LNG export facility in the area.

Earlier, it was reported that Shell plans to cut costs by $3 billion more, following reductions to operating costs last year, resulting in $4 billion in cuts.

According to Bloomberg, Shell is also putting off final investment decisions on LNG Canada, along with Bonga South West in deep water Nigeria — because of lower energy prices, CEO Ben Van Beurden stated.

It ceased operations on a gas field in Abu Dhabi and stopped an oil-sands project in Canada last year, as well.

Below is a message LNG Canada posted on their Facebook page today

The LNG export facility, planned to be built in Kitimat, British Columbia, won government approval to start construction last month. LNG Canada is a venture between Shell, PetroChina Co., Korea Gas Corp. and Mitsubishi Corp.

The company expects $33 billion of capital spending this year, following the combination with BG. This is lower than previously stated estimate of $35 billion.

Read the full story here.