Canada’s Nexen Energy, a wholly-owned subsidiary of China’s CNOOC, has announced that the company and its partner INPEX Gas British Columbia (IGBC) have made the strategic decision to cancel the Aurora LNG feasibility study and will cease all investigation activity effective immediately.
Over the past four years the Aurora LNG project has been conducting a thorough feasibility study on liquefying and shipping LNG from the northwest coast of British Columbia to Asian markets. The project planned to build a LNG plant in Prince Rupert and to ship 24m tonnes of LNG per year.
“Through this feasibility study, Aurora LNG has determined that the current macro-economic environment does not currently support the partners’ vision of developing a large LNG business at the proposed Digby Island site,” Nexen Energy said in a statement.
Nexen said its upstream operations in the Horn River basin will continue while it winds down operations in the Prince Rupert area, and the partners will also monitor the North American gas market to evaluate future upstream and downstream investments.