Canada’s hopes of a nurturing its potential for a prospering Liquefied Natural Gas (LNG) industry has seen another setback, as Aurora LNG has announced it is backing out of a plan with Calgary-based Nexen to build a plant in northwest British Columbia (BC).
It is understood that Aurora LNG do not feel confident in the strength of the regional economy to follow through with the plan.
"Aurora LNG has determined that the current macro-economic environment does not currently support the partners' vision of developing a large LNG business," the release read.
The $20bn project that has now fallen through would have seen the site constructed on Digby Island eventually shipping 24mn tonnes of LNG from BC to Asia annually once completed.
“We are 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,” it continued.
The news comes in the wake of a number of knocks taken by the industry in Canada this year, including Petronas pulling the plug on its $36bn project in July.