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

Canadians on epic journey arrive in Nanoose

Snaw-Naw-As First Nation welcomes participants of Canada C3 voyage

Kwalikum Secondary student back from year in Netherlands

Don’t pass up opportunity to travel with Qualicum Beach Rotary’s help, says Taylor Hunter

Resident slam loud dynamite blasting at Cedar Ridge Estate development

Sleigh feels insulted by Mayor Lefebrve who failed to understand their suffering

RDN creates new service to fund INfilm

Regional district to enter three year agreement with film commision for annual funding of $50,000

Bowser school asks RDN to double funding for outdoor learning area

From $30,000 to $60,000 for Tulnuxw Lelum Cultural Learning Space

VIDEO: Sears liquidation sales continue across B.C.

Sales are expected to continue into the New Year

Human remains found at Silver Creek property

RCMP have been searching the property in the 2200 block of Salmon River Road for the past three days

New B.C. acute care centre opens for young patients, expectant mothers

Facility aims to make B.C. Children’s Hospital visits more comfortable

Kellers Jewellers in Lantzville suffers break-in

Incident happened around 5:30 a.m. Oct. 21, say police.

Search ramps up for B.C. woman after dog, car found near Ashcroft

Jenny Lynn Larocque’s vehicle and dog were found in Venables Valley, but there is no sign of her

Police officer hit by car, stabbed in Edmonton attack back on job

Const. Mike Chernyk, 48, returned to work Thursday

UBC medical students learn to care for Indigenous people

Students in health-related studies to take course, workshop to help better serve Aboriginal people

Dorsett has 2 goals, assist in Canucks’ 4-2 win over Sabres

‘It was a real good hockey game by our group,’ Canucks coach Travis Green said.

Berry disappointed: Bear tries to eat fake fruit on woman’s door wreath

A Winnipeg woman has taken her berry-embellished wreath down, after a hungry bear visited her porch

Most Read