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Shell cancels Prince Rupert LNG plans

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LNG Industry,

According to multiple sources, Shell subsidiary BG International has announced that it is discontinuing development of the Prince Rupert LNG project, located on Ridley Island at the Port of Prince Rupert in British Columbia, Canada.

The proposed project was to include a natural gas liquefaction plant and associated port and infrastructure facilities to export natural gas to international markets. The project was also set to include three LNG trains with a capacity of seven million tpy.

Phase one of the project was estimated to cost US$11 billion.

Shell remains a joint venture participant in the LNG Canada project in Kitimat, British Columbia, although last year it indefinitely deferred final investment decision due to market conditions.

Shell 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 4 – 5% between 2015 and 2030.

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