CONSORTIUM HALTS DEVELOPMENT ON DOUGLAS CHANNEL LNG PROJECT
Today, the Douglas Channel LNG Consortium (Consortium) announced it will halt further development of the Douglas Channel LNG Project (DCLNG) due to unfavourable market conditions. The Consortium had sought to achieve a Final Investment Decision (FID) by the end of 2015; however, the worsening global energy price levels and a challenging market environment have caused the Consortium to withdraw from the project. Members of the Consortium include: AltaGas Idemitsu Joint Venture #2 Limited Partnership (AIJV#2LP), EDF Trading Limited (EDFT) and EXMAR NV (EXMAR). The Consortium intends to discharge its obligations pursuant to last year’s Companies’ Creditors Arrangement Act (CCAA) proceedings.
The Consortium would like to express its appreciation to all of the stakeholders who worked together in a common endeavour to develop the DCLNG Project under increasingly difficult global economic circumstances, including the Haisla Nation, B.C. Government, local communities, Pacific Northern Gas Ltd. (PNG), British Columbia Utilities Commission (BCUC), National Energy Board (NEB), and the Canada Border Services Agency (CBSA).
The project development milestones achieved by the Consortium and the stakeholders help to prove out the viability of floating LNG facilities in British Columbia.