Nexen Energy (a wholly-owned subsidiary of CNOOC) and its partner INPEX Gas British Columbia, announced that they have made the strategic decision to end the Aurora LNG project’s “feasibility study and will cease all investigation activity, effective immediately.”
Over the past four years, Aurora LNG has been conducting a thorough feasibility study on liquefying and shipping LNG from the northwest coast of Canadian British Columbia to Asian markets. Through this feasibility study, Aurora LNG has determined that the current macro-economic environment does not currently support the partners’ vision of developing a large LNG business at the proposed Digby Island site, Nexen Energy said in its statement.
However, the Chines state-run company’s subsidiary reminded that “upstream operations from the partners’ Horn River natural gas assets in northeast British Columbia will continue, and the partners will also monitor the North American gas market to evaluate future upstream and downstream investments according to market conditions.”
Nexen owns 60% of Aurora LNG, while the remaining 40% owned by the Japanese companies, INPEX and JGC (INPEX Gas British Columbia).
Aurora LNG is the latest Canadian LNG export project which has been annulled by its promoters as previously Petronas-led Pacific NorthWest LNG cancelled its plans for construction of a 12 MMT/Y LNG export facility at Port Edward, British Columbia.
Earlier, the Canadian National Energy Board had warned that the country is a late entrant to the global LNG market and the next seven years will be critical to the development of the industry.

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Backgrounds:

On 26 Nov. 2014, B.C. province approved re-location of the project’s site from the northern portion of Grassy Point to Digby Island, which Aurora LNG venture has identified as more suitable site for an export facility.
The $28 billion project is planned to occur in phases with an initial capacity between 10 and 12 MMT/Y of LNG from two trains with the first shipment expected in 2021-2023 time frame. The expansion plans for two additional trains and storage facilities pushing the capacity up to between 20 and 24 MMT/Y of LNG.