VANCOUVER, B.C. – Leaving open the possibility of moving forward when energy prices recover, two firms behind a liquefied natural gas project on the BC coast have decided to suspend it for the foreseeable future.
Japanese oil refiner Idemitsu says if current LNG prices continue into the future, its joint venture with Calgary based AltaGas, would not be able to make a commitment on development.
Given the current low oil prices, Idemitsu added, during a briefing on full year earnings, it will lower its strategic investment during the business year which began at the first of last month by about one third of what it was a year earlier at 560 million dollars.
In February, again citing unfavorable market conditions, a consortium of companies including AltaGas and Idemitsu also halted further development of the separate Douglas Channel LNG project.
This after it failed to achieve by the end of last year a Final Investment Decision on the project which would have featured a floating LNG terminal and storage unit.
The latest announcement comes at a time when the price of crude oil has recovered slightly, but this week it has again slipped below $45 US a barrel.