Oil and gas giant Royal Dutch Shell is putting off a final decision on the proposed LNG project in northwestern BC until the end of the year.
The project is one of several being affected by a drop in Shell’s earnings — which fell 44% in the fourth-quarter.
Warren Brazier, is an energy lawyer at Watson Goepel in Vancouver.
He says the LNG projects in Canada are massive long-term investments for energy companies, and a delay of a few months overall is not big issue for them.
He adds because the LNG proponents also own the gas assets, there’s no need rush a decision on their part.
Brazier says like any other resource commodity, the industry is highly dependent on the global market.
He says with the current low energy prices, companies are taking a hard look at their capital expenditure budgets.
Brazier says while expectations were for the final investment decisions to come sooner than later, he says the province has done well to put BC on the LNG map.
Adding if it’s any consolation for those in Kitimat, it’s a delay rather than a no.