Shell postpones LNG Canada final investment decision as profits plunge
VANCOUVER — Royal Dutch Shell is postponing a final investment decision on its proposed liquefied natural gas megaproject in British Columbia as it grapples with plummeting earnings due to low energy prices.
Chief executive Ben van Beurden said Thursday that the company was postponing a final commitment on the proposed LNG Canada project in northwestern B.C. as it makes “substantial changes in the company” the will likely include further spending cuts on top of the $12.5 billion it cut last year.
Shell Canada spokeswoman Tara Lemay said that while the decision has been delayed, the joint venture still expects to make it this year.
“The LNG Canada joint venture partners have agreed that due to market conditions, it makes sense to shift the final investment decision to late 2016. In the meantime, the joint venture will continue to work on the competitiveness of the project,” Lemay said in a statement.