Shell cancels plan for Prince Rupert LNG project

Royal Dutch Shell announced it has dropped its plan for constructing a liquefied natural gas (LNG) facility in Prince Rupert, British Columbia.

The project, to be sited in the south of Ridley Island, was one that Shell inherited when it acquired gas company BG Group in 2016.

But progress on it had stalled after the Shell takeover as the supermajor assessed its assets.

Shell has, however, reconfirmed its commitment to another Canadian LNG project, the $40bn LNG Canada joint venture at Kitimat in the north coast region of British Columbia.

That project has Shell in partnership with PetroChina, Korea Gas and Mitsubishi.

Despite having vast natural gas resources Canada possesses no operational LNG export facility as investment has frozen because of declining prices and competition from the US, which started exporting from Sabine Pass in Louisiana more than a year ago.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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