AltaGas Ltd. (TSX:ALA) is shelving plans for a small floating liquefied natural gas plant in Kitimat.
In its year-end financials, the company cites “adverse economic conditions and worsening global energy price levels” as the reason for a consortium led by AltaGas deciding to halt the project.
At an estimated $400 million, the LNG project would be comparatively small.
The Douglas Channel LNG Consortium includes Idemitsu Joint Venture Ltd. Partnership, EDF Trading Ltd., and EXMAR NV.
AltaGas CEO David Cornhill told reporters and investors in the company’s fourth quarter earnings call Thursday, February 25 that the consortium had been unable to secure an offtake agreement for the project.
