LNG Canada delay means dark clouds growing over industry in B.C.: experts
VANCOUVER — Premier Christy Clark’s dreams of a booming liquefied natural gas industry in British Columbia have been dealt another blow after a Shell-backed venture delayed a final investment decision indefinitely.
LNG Canada’s decision to put the project in Kitimat on hold amid weak global prices isn’t surprising, but it adds to the pessimistic mood around the future of the sector in B.C., experts say.
“It just creates a dark cloud over what is already a bunch of dark clouds for that type of economic activity,” said Martin King, vice-president of institutional research at FirstEnergy Capital Corp.
Clark made a massive political bet on LNG in 2013 with promises of 100,000 jobs and $100-billion in revenue over decades. Today, there are 20 projects proposed in B.C., but analysts say only a handful appear economically viable.