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Shell on Friday cancelled an LNG project in Prince Rupert it acquired when it purchased the BG Group in 2015.

When Shell acquired the BG Group for $70 billion there were already questions of whether the Prince Rupert project would remain, as Shell had an existing LNG project in development in nearby Kitimat in northwest B.C.

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“Acquired as part of the Shell and BG Group combination in 2016, the Prince Rupert LNG project has been part of a global portfolio review of combined assets, which resulted in the decision to discontinue further development,” Shell subsidiary BG International Ltd. said in a written statement.

The Prince Rupert office will remain open through May 2017, said the company.

Much touted by the B.C. Liberal government, a new export liquefied natural gas export industry has failed to materialize in the province.

Mega-projects in northwest B.C. led by Shell, Chevron and Malaysian state-controlled Petronas have been stalled and analysts say that B.C. may have missed the window to capitalize on high Asian prices needed to make the project profitable.

LNG projects in B.C. have been hampered by reduced global demand, competition from new entrants such as the U.S., and the need for energy companies to reduce capital spending after oil prices plummeted in 2015.