- Category: Economic
- Published Thursday, February 25, 2016
- CTV News
CALGARY - AltaGas Ltd. says it has stopped work on the Douglas Channel liquefied natural gas project due to low prices and an oversupplied market.
During a conference call to discuss its financial results, AltaGas said the consortium behind the project failed to secure any meaningful offtake agreements and so shelved the project.
AltaGas, along with its global partners in the project, had been targeting a start-up for the project near Kitimat, B.C., in 2018.
The project had recently been held up over a 25 per cent excise duty being charged on its floating LNG facility.
AltaGas said that had been resolved and no duty would be charged, but with the unfavourable markets they couldn't continue working on the project.
Earlier this year Royal Dutch Shell said it was postponing an investment decision on its proposed LNG terminal in Kitimat until the end of the year.