The British company that will build a planned natural gas liquefaction plant in Lake Charles said it is holding off on a similar project in Prince Rupert, Canada.
The current uncertainty about the size and number of North American projects -- roughly two dozen have been proposed in the United States and close to that number in Canada -- BG Group plc is “taking a prudent approach” to development in Canada, the company announced in its third-quarter earnings statement. The prudent approach means delaying the $11 billion project. BG had planned to begin construction in 2016.
Meanwhile, BG said it expects U.S. Federal Energy Regulatory Commission to approve for the Lake Charles LNG project in 2015. The facility will be capable of exporting 16.5 million tons of LNG per year and will be owned by Energy Transfer. The project is known as Trunkline LNG Export LLC. Trunkline is a joint venture owned by Energy Transfer Equity LP and Energy Transfer Partners LP.
BG will control the construction, development and operation of the project, along with a 25-year liquefaction capacity contract.