Map of the now cancelled Grassy Point LNG project. (CEAA photo)

Australian company ends Grassy Point LNG project

Another liquefied natural gas project on the North Coast, B.C. ends its commitment

Woodside Energy Ltd. has silently withdrawn from its Grassy Point LNG project on the North Coast of B.C.

“In January 2018, Woodside elected not to renew its Sole Proponent Agreement for the Grassy Point LNG site on the north-west coast of British Columbia,” as stated Woodside Petroleum’s 2017 Annual Report released last month.

The liquefied natural gas (LNG) terminal site was proposed 30km north of Prince Rupert, near Lax Kw’alaams. The Australian company began geotechnical surveys on Grassy Point in 2014.

In 2015, the National Energy Board gave the project a licence to export 20 million tonnes of LNG a year for up to 25 years. There wasn’t much progression on the project following the March 2016 open house.

READ MORE: Which LNG projects are left in Prince Rupert

This is the latest LNG project on the North Coast to withdraw interest. In Dec. 2017, WCC LNG announced it was closing its office on First Avenue in Prince Rupert due to current LNG market conditions and economic uncertainties. Previous to that project, Nexen Energy backed out of its Aurora LNG project on Digby Island in September.

Interest in the Kitimat LNG project still remains. The report mentions the Kitimat project as the one of the “most advanced LNG opportunities in Canada.” Woodside has a 50/50 joint venture in the project with Chevron Canada Ltd.

While Woodside states in its annual report that it’s “engaging governments to establish a clear, stable and competitive fiscal framework”, its project partner, Chevron Corp, may be less certain. A report from Reuters on March 5 states that Chevron is possibly looking to sell a minority stake in the Kitimat LNG project.

Chevron’s communications lead, Ray Lord, responded to Black Press Media’s query stating that “Chevron is not in a position to comment on commercial matters, rumours or speculation.”

Meanwhile, in Shell’s LNG Outlook 2018 the company is predicting a global supply shortage for LNG by mid-2020s unless new production projects come online soon.

READ MORE: Aurora LNG backs out

Like us on Facebook and follow us on Twitter

Just Posted

Transport Canada will review all port authorities, including Nanaimo’s

Series of meetings and round tables could lead to revamping port authorities’ business models

Nanaimo animal control says 300 dead rabbits recovered

Province of B.C. confirms more positive tests for rabbit haemorrhagic disease

Nanaimo company awarded $33-million Site C contract

F&M Installations Ltd. will build substation for B.C. Hydro megaproject

NRE says some form of shutdown now unavoidable

City of Nanaimo staff has been asked to look into options to support $6-million recycling depot

Vancouver Island’s Best Videos of the Week

A look at some of the best video stories from the past week ending March 16, 2018

Nanaimo fire trucks rolling out more often than ever

Fire chief projects that Nanaimo Fire Rescue will answer 10,000 callouts in 2018

VIDEO: Release and catch at Colliery Dam Park

Trout released at lower Colliery dam in Nanaimo

4 facts to ring in St. Patrick’s Day

What do you really know about the Irish celebration?

Beefs & Bouquets, March 15

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail

UPDATED: Brake failure sees plane crash into gate in Cowichan, nobody injured

Rescue crews called out to the scene at Stamps and Henderson roads

Federal government seeks public feedback on pedestrian safety

What safety measures do you think need to improved for pedestrians and cyclists?

Search continues for 10-year-old Montreal boy missing since Monday

Montreal police said they are exploring every possibility in search for Ariel Jeffrey Kouakou

Airline passenger-rights bill claws back protections for travellers: Advocate

Bill C-49 would double tarmac delays, scrap compensation for flights affected by mechanical failures

Most Read