Prince Rupert LNG shelved by Shell

LNG Canada project in Kitimat still "actively progressing"

By Shannon Lough

The Prince Rupert LNG project will not become a reality on the North Coast.

BG International, a member of Shell Group, has confirmed that is discontinuing any development on its proposed liquefied natural gas project that was to be on Ridley Island.

“After a careful review Shell has decided to not continue with the Prince Rupert project,” said Rosa Miller, community relations manager for Prince Rupert LNG.

BG Group had put the project on hold in 2014, and in 2016, after Shell acquired BG Group, the LNG project became a part of the global portfolio review of combined assets leading to the decision to end development.

While the project was under review, the regionally based team, including Miller, continued to work in the area to support environmental initiatives and social investment activities. The Prince Rupert office will remain open until May.

The plant was proposed to produce 21 million metric tonnes of LNG a year, using gas supplies from the Westcoast Connector Gas Transmission Project, which was to be built by Spectra Energy.

The press release issued states that the LNG Canada project in Kitimat is still being “actively progressed by Shell and the joint venture participants as an opportunity to bring Canadian gas resources to the growing global gas markets.”

“We are disappointed to see Shell bring an end to this particular project on Ridley Island at the same time we are working with a number of other proponents who have projects either proposed or underway for Ridley Island,” said Michael Gurney, manager of corporate communications for the Port of Prince Rupert.

“The port is excited to continue its development plan aggressively building one of the strongest and fastest ports on the west coast,” said Michael Gurney, manager of corporate communications for the Port of Prince Rupert.

Royal Dutch Shell recently sold off some of their Alberta oilsands assets, to the tune of $12.74 billion to Canadian Natural Resources.

LNG Canada delayed their final investment decision in July of 2016 due to market conditions, after previously expecting to make a decision by the end of 2016.

with files from Devyn Ens