Further to this post,
it looks like this major project may be biting the bitumen–at least for some while:
Shell-backed LNG Canada delays plans for terminal on B.C. coast
The LNG Canada joint venture [website here] led by Royal Dutch Shell PLC has delayed its final investment decision on exporting liquefied natural gas from Kitimat in northern British Columbia.
Andy Calitz, LNG Canada’s chief executive officer, had been scheduled to announce a decision on whether to proceed with the project by the end of this year.
But on Monday [July 11], he said there isn’t any new target set to determine when there might be a revised timeline.
“Our project has benefited from the overwhelming support of the B.C. government, our First Nations and of the Kitimat community. We would not have advanced the project thus far without it,” Mr. Calitz said during a conference call. “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.”
LNG Canada forecasts that it would need to invest up to $40-billion on construction for the export terminal.
Shell holds 50 per cent of LNG Canada. PetroChina Co. Ltd. owns 20 per cent of the project, while Japan’s Mitsubishi Corp. and South Korea’s Kogas each have a 15 per cent stake.
Premier Christy Clark campaigned hard during the 2013 provincial election on the prospect of a booming LNG sector, boasting that her Liberals would guide the fledgling industry and transform the provincial economy.
But LNG prices in Asia have plunged while supplies soar globally. Last month, the International Energy Agency forecast a worldwide glut of LNG over the next five years, with demand weakening in Japan and South Korea while supply rises in Australia and the United States.
Mr. Calitz emphasized that Shell and its three partners made the move jointly to delay their final investment decision. “The project has not been cancelled,” he said…
Shell and other energy companies have been facing challenges in operating during a time of low prices for crude oil, natural gas and LNG [LNG price is tied to crude’s]…
Industry experts say the weak state of the LNG industry is casting doubt on all 20 proposals to export LNG from British Columbia…
Sigh. Whilst on the oil pipeline front First Nations won big (June 30 story):
Enbridge’s Northern Gateway pipeline approval overturned by federal court
The Canadian government failed in its duty to consult with aboriginal people before giving the green light to a controversial pipeline proposal to link Alberta’s oilsands to British Columbia’s north coast, the Federal Court of Appeal has ruled.
The court quashed federal approval for Enbridge’s $7.9-billion Northern Gateway project [website here] in a written decision dated June 23 but released Thursday by a law firm involved in the appeal.
The judgment says the government neglected to discuss subjects of critical importance to First Nations by ignoring many of the project’s impacts and offering only a “brief, hurried and inadequate” opportunity for consultation…