Shell delays final decision on LNG Canada as profits slump
Shell is postponing the final investment decision (FID) on its multi-billion-dollar LNG Canada project in British Columbia, the company announced on Thursday.
“We are making substantial changes in the company, reorganizing our upstream, and reducing costs and capital investment, as we refocus Shell, and respond to lower oil prices,” Shell’s CEO Ben van Beurden said on a Thursday conference call announcing its fourth quarter and full-year results.
“For 2016, we have exited the Bab sour gas project in Abu Dhabi, and are postponing final investment decisions on LNG Canada and Bonga South West in deep water Nigeria,” he added.
The Shell-led LNG Canada JV received a permit from British Columbia’s Oil and Gas Commission in January for its proposed project located near Kitimat.
The Canadian National Energy Board also recently granted a 40-year export licence to LNG Canada.
Under the licence, which still must be approved by the Governor in Council, LNG Canada is allowed to export 1494 billion cubic meters.
The project, proposed by a JV of Shell, PetroChina, Kogas and Mitsubishi Corp., would initially consist of two 6.5 MMtpy LNG production trains with an option to expand the facility with two more trains.
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