An energy analyst says Royal Dutch Shell’s announcement that it’s moving away from LNG shouldn’t come as a surprise.
Warren Brazier is an energy lawyer at Watson Goepel in Vancouver.
He says LNG projects have long term outlooks, and while the recent announcement by the energy giant might have a short term impact, it doesn’t mean the project is dead.
Brazier says it looks like Shell is prioritizing other projects, and given low LNG prices and its recent acquisition of BG Group, budgets will be re-examined.
He says despite all the hype over LNG by the province, the final decision is ultimately up to the companies themselves to decide if the projects make business sense.
Kitimat’s mayor, Phil Germuth agrees with that assessment, saying while sooner is better than later, Kitimat has weathered economic downturns before.
Royal Dutch Shell announced yesterday that it’s shifting away from growing its liquefied natural gas business.
The company is one of the major partners in the proposed LNG Canada project in Kitimat.