A view of Casey Cove, from a beach on Dodge Cove, where a section of Nexen’s proposed Aurora LNG project will be located. Photo by Shannon Lough A view of Casey Cove, from a beach on Dodge Cove, where a section of Nexen’s proposed Aurora LNG project will be located. Photo by Shannon Lough

Aurora LNG backs out

The liquefied natural gas project proposed for Digby Island has ended its run

Another liquefied natural gas (LNG) project has pulled the plug on its plans for the North Coast.

Aurora LNG has spend four years exploring the possibility of shipping LNG from a site on Digby Island to Asian markets — and on Sept. 14 the project partners announced their decision to end their feasibility study.

“Through this feasibility study, Aurora LNG has determined that the current macro-economic environment does not currently support the partners’ vision of developing a large LNG business at the proposed Digby Island site,” the press release states.

READ MORE: WHICH LNG PROJECTS ARE LEFT IN PRINCE RUPERT

The project was a partnership between Nexen Energy, a subsidiary of CNOOC Ltd., and INPEX Gas British Columbia. The announcement comes on the heels of Petronas ending its Pacific NorthWest LNG project on Lelu Island in Port Edward on July 25, which also cited market conditions as to why it would not proceed.

After Petronas fell through, Aurora LNG had moved through the environmental assessment process further than the other six LNG projects proposed for the Prince Rupert area. The project was on Day 142 of the 180 day B.C. environmental assessment process when the regulatory manager of the project requested in August to suspend the assessment until Aurora had addressed outstanding questions.

The project was proposed to handle 24 million metric tonnes of LNG per year, and had received its licence from the National Energy Board in October 2014.

“While disappointed in this outcome, Aurora LNG is proud of its work in northwest British Columbia over the past three years and the relationships it has built with local community members, Indigenous groups, stakeholders and government. The partners’ are committed to a responsible and orderly conclusion of their activities in the Prince Rupert region,” the release states.

More to come.

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