FORT ST. JOHN, B.C. – LNG Canada announced today that its joint venture participants, which are: Shell, PetroChina, Mitsubishi Corporation and Kogas, have decided to delay a final investment decision on LNG Canada that was planned for end of this year.
LNG Canada says that “LNG Canada remains a promising opportunity”. Saying that they have many stakeholders, First Nations support, achieved critical regulatory approvals, has important commercial and engineering contracts in place to design and build the project, and through its pipeline partner Coastal Gas Link, has received necessary environmental approvals and First Nations support along the pipeline right-of-way.
Andy Calitz, CEO of LNG Canada says that they couldn’t have gotten where they are today without all the support that they have received.
“Our project has benefitted from the overwhelming support of the BC Government, First Nations – in particular the Haisla, and the Kitimat community. We could not have advanced the project thus far without it. I can’t say enough about how valuable this support has been and how important it will be as we look at a range of options to move the project forward towards a positive FID by the Joint Venture participants.”
The governments of BC and Canada have developed some sound fiscal and regulatory frameworks for success, according to LNG Canada.
The company goes on to say that there are many factors as to a decision can’t proceed at the moment.
“However, in the context of global industry challenges, including capital constraints, the LNG Canada Joint Venture participants have determined they need more time prior to taking a final investment decision. At this time, we cannot confirm when this decision will be made.
In the coming weeks, LNG Canada will continue key site preparation activities and work with its joint venture participants, partners, stakeholders and First Nations to define a revised path forward to FID.”