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Shell Pulls Plug on Prince Rupert LNG Plan; LNG Canada Project Still On

Shell Group unit BG International Ltd. is discontinuing development of the Prince Rupert Liquefied Natural Gas (LNG) project, located on Ridley Island at the Port of Prince Rupert in British Columbia (BC).

Acquired as part of the Shell and BG Group combination in 2016, the project was reviewed along with other global assets prior to the decision to discontinue development. The Prince Rupert office will remain open through May to complete community engagement, Shell said.

Separate from Prince Rupert LNG, Shell remains a joint venture participant in the LNG Canada project in Kitimat, BC. Shell and its partners still plan to bring Canadian gas to global gas markets. LNG Canada is a joint venture of Shell (50%), PetroChina (20%), KOGAS (15%) and Mitsubishi Corp. (15%).

“We are still very much in this game,” Robert Dakers, commercial director for the 3.7 Bcf/d tanker export plan by LNG Canada, said earlier this month. Shell delayed a final investment decision indefinitely for LNG Canada in early 2016.

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