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

Moose hunting restrictions proposed to help balance population and allocation

Regulation options set to move forward with input by April or May 2018

Province to boost ER services at Mills Memorial

Money to add salaried doctor positions

Province opens public input on policing standards

The move flows from recommendations of the Missing Women Commission of Inquiry

Terrace hockey player breaks all-time points record in Major Midget League

Prospects are bright for Mason Richey, suiting up this fall with the West Kelowna Warriors

Ottawa proposes restricted pot labels, packages

Packaging will include red stop sign with marijuana leaf and ‘THC’

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Golden Knights win 4-1, remain undefeated against Canucks

Vegas gets points from 12 players in dominating effort versus Vancouver

Alberta budget plans for Trans Mountain expansion

Finance Minister Joe Ceci says expected revenues will be factored into budget forecasts

Proposed gun bill attacked by gun owners and shooting victims

The federal government tabled the bill today in order to tighten the sale and tracking of firearms

New anti-radicalization centre in the works for B.C.

Centre aims to help ‘vulnerable individuals on the path to radicalization’ before they turn to crime

Terrace Interiors Ltd. to close after 56 years

The interior paint store will shut its doors on May 10

B.C. bravery, public service honoured by Governor General Julie Payette

UVic basketball coach Kathryn Shields inducted into Order of Canada

Most Read