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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 Thursday to discuss its financial results, AltaGas said the consortium behind the project failed to secure any meaningful off-take agreements and so it shelved the project.

READ MORE: With world ‘awash’ in oil, prices won’t rise much anytime soon: IEA

AltaGas, along with its global partners in the project, had been aiming for the project near Kitimat, B.C., to begin exporting LNG 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.

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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.