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 (LNG) mega-project in British Columbia as it grapples with plummeting earnings due to low energy prices. Chief executive Ben van Beurden said Thursday the company is delaying a final commitment on the LNG Canada project in northwestern B.C. as it makes “substantial changes in the company” that will likely include further spending cuts on top of the $12.5 billion it cut last year. A final decision on the LNG Canada project had been expected in the spring, but Shell Canada spokeswoman Tara Lemay says the joint venture behind the project will now make a decision by the end of the 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. B.C. Premier Christy Clark, speaking at an energy conference in Ottawa, said she was reassured to see the 2016 commitment. “What I was pleased to see was Shell reconfirm its intention to make a final investment decision this year,” said Clark. “Even in these very uncertain times, which I acknowledge, that's affected their timeline … they've reconfirmed the fact they want to go ahead with this project, which is going to mean tremendous growth for all of Canada.”