LNG Canada has released a statement claiming that the project joint venture (JV) participants – Shell (50%), Mitsubishi Corp. (15%), PetroChina (20%) and Kogas (15%) – have postponed the final investment decision (FID), which was scheduled for the end of 2016.
The project participants decided that global industry challenges, such as capital constraints, mean that more time is needed to make a final decision. Currently, no indication of when FID might be taken has been disclosed.
Nonetheless, the project still has strong support from stakeholders and First Nations groups; it has obtained the necessary regulatory approval; and has commercial and engineering contracts in place to proceed with design and construction. Furthermore, through its pipeline partner, Coastal Gas Link, it has obtained the necessary environmental approval and First Nations support along the pipeline route.
The CEO of LNG Canada, Andy Calitz, said: “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.”
LNG Canada claims that it will proceed with site preparation activities and work alongside its JV participants, partners, stakeholders and First Nations in order to develop a new path to FID.
Edited from press release by David Rowlands