LNG Canada announces delay in proposed natural gas liquefaction plant in Kitimat

LNG Canada delaying proposed natural gas liquefaction plant in Kitimat

LNG Canada announced late Monday afternoon that it will be delaying their proposed natural gas liquefaction plant in Kitimat.

The decision was made by the four joint venture partners on the project, Shell, PetroChina, Mitsubishi, and Kogas. A final investment decision was previously expected in December of this year.

“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,” states the press release posted on LNG Canada’s website.

“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,” it continues.

Andy Calitz, LNG Canada CEO, stressed that the project is not cancelled, only delayed, though he did say that there is no current timeline in place for when the project would begin to move forward again towards a final investment decision.

“I don’t know yet,” he said during the company’s press conference, following the online announcement of the delay.

Calitz thanked the communities of Kitimat, Kitamaat Village, and reiterated that LNG Canada’s partnership and cooperation with the Haisla Nation and Chief Councillor Ellis Ross has been a critical aspect of the project.


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