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

UPDATE: Car rolls over coming around corner on Campbell River street

A witness said a car that rolled over onto its roof on… Continue reading

Campbell River RCMP continue search for missing teenager

The Campbell River RCMP have received “numerous tips” on the disappearance of… Continue reading

Search continues for missing Campbell River teen

Jordan Holling, 17, went missing almost a week ago, but the community is rallying to find him

Community rallying for family of missing 17 year-old

Ground searches, meals being prepared and thousands of posters have been circulated

Restoration work on destroyed Campbell River wetland expected to be complete next year

Remediation work on sensitive wetlands south of Jubilee Parkway is expected to… Continue reading

Mirror Morning Oct. 23

For the full story:Campbell River RCMP request help locating missing youth Community… Continue reading

B.C. NDP convention set for Victoria

Premier, federal leader Jagmeet Singh to add energy

Silver Creek farm search expands north

RCMP were seen collecting evidence three kilometres north of the farm where human remains were found

VIDEO: Motorcycle catches fire in Nanaimo traffic

Motorcyclist takes fast action to get burning bike off the road along the old Island Highway

Ferries re-routed due to fluid spill at Nanaimo’s Duke Point

At least one sailing from Tsawwassen to Duke Point was redirected to Departure Bay

Nanaimo man assaulted, tied up and robbed at his home

Incident occurred about 7 a.m. Monday, Oct. 23 at a home on Beverly Drive

B.C. school trustee calls LGBTQ school program ‘weapon of propaganda’

Chilliwack’s Barry Neufeld published the comments on his Facebook page

B.C. couple hope boat drone becomes first to cross Atlantic

Colin and Julie Angus of Victoria to have drone collect environmental data en route

B.C. casino accused of illegal activity follows rules: operator

B.C. had launched review after concerns about money laundering at River Rock casino in Richmond

Most Read