Shell Shelves Prince Rupert LNG
Royal Dutch Shell PLC has officially shelved its plans to build the Prince Rupert LNG project, which had been planned for Ridley Island in British Columbia. However, it is still considering the potential of its other West Coast LNG option.
Shell acquired the Prince Rupert LNG as part of a portfolio of projects in its takeover of natural gas giant BG Group last year.
Shell said it decided to discontinue the project after reviewing how it stacked up against its existing options, but it continues to actively move forward on the proposed Kitimat, B.C.-based LNG Canada project with its partners.
“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,” Shell subsidiary BG International Ltd. said in a press release.
Shell said the proposed Prince Rupert LNG project was in the assessment phase, with no development on Ridley Island. Shell is withdrawing from the lease arrangements at the site.
LNG projects in B.C. have been hampered by reduced global demand, competition from new entrants such as the U.S., and the need for energy companies to reduce capital spending after oil prices plummeted in 2015.
LNG Canada has involvement from four companies: Shell, PetroChina Co. Ltd., Korea Gas Corp. and Mitsubishi Corp.
