CALGARY (NEWS1130) – The chairman of British energy firm BG Group says it’s hitting the pause button on its proposed liquefied natural gas project near Prince Rupert.

On a conference call to discuss BG’s third-quarter results, interim executive chairman Andrew Gould says the company isn’t abandoning the project.

But he says there’s a risk the market will be well supplied past 2020, so BG is waiting to see how conditions evolve.

Gould says estimated volumes out of the United States are looking to be higher than previously expected and pricing is generally weak.

BG says its proposed project would be developed in two phases, eventually reaching a production capacity of up to 21 million tonnes per year.

BG’s proposal is one of 18 planned for Canada’s west coast that would chill natural gas into a liquid state, enabling it to be shipped across the Pacific by tanker.

Premier Christy Clark won the last provincial election largely due to her promises for the economy, and the development of LNG was a big part of that platform, according to Bruce Ralston.

The NDP’s natural gas critic says this setback is further evidence this government’s projections have been overly optimistic.

“Politically, they need a deal. They over-promised in the last election and they’re still trying to come through for political reasons rather than respond to economic reality.”

Ralston says this development the province needs to look into diversifying our economy.