It’s another blow to BC’s liquefied natural gas hopes.
AltaGas says low prices and an oversupplied market have forced it to stop work on the Douglas Channel LNG project near Kitimat.
During a conference call Thursday to discuss financial results, AltaGas said the consortium backing the project failed to secure any meaningful offtake agreements for the facility and so it decided to shelve the project.
The project partners had recently been grappling with a 25 percent excise duty to be charged on its floating LNG facility. AltaGas said that it reached a resolution that the duty would not be charged, but rough markets forced its hand.
Earlier this month, Shell announced that it was postponing a Final Investment Decision on its LNG Canada proposal at Kitimat until later this year.