Prince Rupert LNG Project Officially Dead as Shell Focuses on Kitimat
BG Group's Prince Rupert LNG project is officially dead.
In a news release issued today, BG International, which is part of the Shell Group, confirmed the company will discontinue the Prince Rupert project, which was planned for Ridley Island.
The project appeared to lose favour, after Shell aquired BG Group two years ago.
The company says its Prince Rupert office will remain open until May, in order to complete community engagement.
Shell also said it's still actively progressing its LNG Canada project in Kitimat, saying the joint venture participants in the project see it as an opportunity to bring Canadian gas resources to the global gas markets, although a final investment decision remains on hold.
Shell's LNG outlook, issued last month, projects demand to grow at a rate of four-to-five per cent per year between now and 2030.
=== OFFICIAL NEWS RELEASE ===
Prince Rupert LNG – Project Update
March 10, 2017
BG International Limited, a member of the Shell Group (“Shell”), confirmed today that
the company will discontinue development of the Prince Rupert Liquefied Natural Gas
(LNG) project, located on Ridley Island at the Port of Prince Rupert in British Columbia.
Acquired as part of the Shell and BG Group combination in 2016, the Prince Rupert
LNG project has been part of a global portfolio review of combined assets, which
resulted in the decision to discontinue further development.
During the global portfolio review, the local project team has continued to engage locally
and to support environmental initiatives and social investment activities in the area. The
Prince Rupert office will remain open through May 2017 to complete community
Separate from Prince Rupert LNG, Shell remains a joint venture participant in the LNG
Canada project in Kitimat, British Columbia. This project continues to be actively
progressed by Shell and the joint venture participants as an opportunity to bring
Canadian gas resources to the growing global gas markets.
Globally, Shell is present across the full LNG value chain and views LNG as a profitable
business, a clean energy source and part of the answer to solving the world’s energy
Shell’s LNG Outlook, issued February 20, 2017, provides a view on global LNG market
trends. Global LNG demand projected to grow at a rate of 4-5% per year between 2015
Notes to Editors:
LNG Canada is proposing to design, build and operate an LNG export terminal in
Kitimat British Columbia.
LNG Canada is a joint venture company comprised of four global energy companies –
Shell (50%), PetroChina (20%), KOGAS (15%) and Mitsubishi Corporation (15%).