zoomImage courtesy of LNG Canada

The Hague-based energy giant Shell said it is postponing final investment decision on its multi-billion LNG Canada project in British Columbia.

“We are making substantial changes in the company, reorganising our Upstream, and reducing costs and capital investment, as we refocus Shell, and respond to lower oil prices,” Shell’s CEO Ben van Beurden said on Thursday announcing the company’s fourth quarter and full year results.

“For 2016, we have exited the Bab sour gas project in Abu Dhabi, and are postponing final investment decisions on LNG Canada and Bonga South West in deep water Nigeria,” van Beurden said.

Shell-led LNG Canada joint venture received in January an LNG facility permit by British Columbia’s Oil and Gas Commission, for its proposed project located near Kitimat.

The Canadian National Energy Board also recently granted a 40-year export licence to LNG Canada.

Under the licence, which still has to be approved by the Governor in Council, LNG Canada is allowed to export 1494 billion cubic metres.

The project, proposed by the joint venture of Shell, PetroChina, Kogas and Mitsubishi Corporation, would initially consist of two 6.5 mtpa LNG production trains with an option to expand the facility with additional two trains.