Shell has officially suspended its plans to build the proposed Prince Rupert LNG project on Ridley Island in British Columbia (Canada).
The project was initially developed by BG Group, which aimed to build a 14 Mt/year gas liquefaction plant by 2020. BG Group had been looking for partners to reduce its stake to 50% and signed a Memorandum of Understanding, whose terms were not disclosed, with a subsidiary of CNOOC (China) in April 2014. The company planned to make a final investment decision (FID) on the project in 2016 but postponed the FID sine die. The project had remained in limbo since 2014 and was placed on the back-burner by Shell, which took over BG Group in 2016.
Shell will continue to invest in the C$40bn (US$30bn) LNG Canada project in Kitimat (British Columbia), in partnership with PetroChina, Kogas and Mitsubishi. LNG Canada will consist of two LNG trains of 6 Mt/year each (up to 6.5 Mt/year) with an option to later double the liquefaction capacity to four trains. Commissioning was expected in 2022 but might be delayed as the FID was postponed in July 2016.
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