According to a letter published by the Huu-ay-aht First Nations, Steelhead LNG has decided to cease current project work on the 12 Mt/year Kwispaa LNG export terminal in Sarita Bay on Vancouver Island (British Columbia, Canada), throwing the future of the project into doubt. The drivers behind the decision were not disclosed, though independent project developer Steelhead LNG highlighted that the investor-funded project needed more economic clarity, and the project is likely to remain on hold until a further update is provided by Steelhead LNG over the coming weeks.
The project was set to include two 6 Mt/year units and was expected to come onstream in 2024. Development plans also entailed a possible 12 Mt/year extension since the whole project is licensed to export up to 24 Mt/year of LNG for 25 years. In September 2018, Steelhead LNG selected the South Korean engineering company Hyundai Heavy Industries to provide front-end engineering and design (FEED) of two onshore hulls for the first phase of the project.
Several Canadian liquefaction and export projects were suspended or cancelled in the last two years, of which in particular: Pacific Northwest LNG (12 Mt/year) in August 2017, Aurora LNG (24 Mt/year) in September 2017, Malahat LNG (6 Mt/year) in December 2017, Grassy Point LNG (20 Mt/year) and ExxonMobil's WCC LNG project (30 Mt/year) in December 2018.
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