LNG Canada CEO Andy Calitz announces project proceeding to engineering and environmental assessment, joined by officials from PetroChina, Mitsubishi and Korea Gas as well as Premier Christy Clark and Natural Gas Development MInister Rich Coleman, April 30, 2014. (Black Press files)

LNG viable for long term, NDP minister says

Interest still strong despite ‘major plummet’ of prices

The cancellation of a second liquefied natural gas export project on B.C.’s North Coast is a disappointment, but long-term prospects for the industry remain strong, B.C. Energy Minister Michelle Mungall says.

Chinese-owned Nexen Energy and its Japanese partner INPEX Gas B.C. announced Thursday the are cancelling their Aurora LNG project in the Prince Rupert area. This follows the July cancellation of a project backed by Petronas and its international partners for the same region.

RELATED: Aurora cancellation leaves eight B.C. projects on books

The change of government from the LNG-promoting Christy Clark B.C. Liberals to the NDP had nothing to do with the decision, Mungall said Tuesday. One of the NDP’s first acts on taking office was to cancel the annual LNG industry conference in Vancouver.

“When we spoke with Aurora LNG, they were very clear that this decision today is about global market pricing,” Mungall said. “Keep in mind that when a lot of the proposals came forward, we were looking at about $18 per million BTUs and now it’s at $6 per million BTUs, so we’ve seen a major plummet in global pricing, and that is the reason why Aurora made their decision.”

In 2015, the Chinese National Offshore Oil Corp. (CNOOC) closed a $15 billion deal for Calgary-based Nexen Inc., including extensive gas field developments in northeast B.C., before launching the Aurora project.

“They are continuing their plays in the Horn River basin, so they are not exiting B.C. as a whole, they are just cancelling their LNG project,” Mungall said.

“Every single player in the industry, every single company is saying that B.C. has some of the best natural gas in the world, and they are definitely committed to their projects.”

Eight more projects are ongoing, including LNG Canada, a proposal for the Kitimat area backed by Shell Canada, Korea Gas, Mitsubishi and PetroChina.

Just Posted

Red Cross Workers to visit Bella Coola January 23 – 25

Red Cross workers will be at the Moose Hall Jan 23-25 to meet one-on-one with individuals

Bella Coola to benefit from massive investment in coastal internet

A combined investment of $45.4 million will bring new and updated high-speed internet on the coast

Nearly $500,000 available for internships with First Nations government

Funds announced through partnership with Northern Development and Government of Canada

O’Reilly trial scheduled to start January 15 for Anahim Lake murders

O’Reilly is charged with first-degree murder

School District 49 to re-open Nusatsum Elementary in September 2018

SD49 says increasing enrollment is driving its decision to re-open the school

B.C. cougar kitten rescued after mother struck by vehicle

Conservation Officers find home for young kitten found dehydrated and frostbitten near Williams Lake

World’s fastest log car made in B.C. sells for $350,000 US

Cedar Rocket auctioned off three times at Barrett-Jackson Co., netting $350,000 US for veterans

Bad timing: Shutdown spoils Trump’s one-year festivities

Trump spends day trying to hash out a deal with Senate Minority Leader Chuck Schumer

RCMP nail sex toy thief

Shop owner plays a role in arrest

Ice-cream-eating bear draws controversy

An Alberta Wildlife Park posted a video this week of one of their bears going through a Dairy Queen drive-through

Fernie, RCMP go to court over city log books in fatal ammonia leak probe

Log books center stage in clashing of investigations between the city and RCMP

B.C.’s biggest pot plant planned for Oliver

Co-founder Tony Holler said the 700,000 sq. ft. facility would produce 100,000 kg of pot per year

High-end whisky seized in B.C. bar raids

Raids end in seizures at Victoria, Nanaimo and Vancouver whisky joints

Double-doubles and demonstrations: Employees rally outside Tim Hortons

Protests held in response to Ontario franchise owners cutting employee benefits and breaks

Most Read