Aurora and partners have backed out of a plan to build a Liquefied Natural Gas plant in north-western Canada.
Aurora LNG is a joint venture between Calgary based Nexen Energy and and INPEX Gas British Columbia (IGBC).
The partnership announced this morning that it was making the “strategic decision” to end the Aurora LNG feasibility study.
All investigation activity will cease, effective immediately.
In a statement, Nexen on behalf of all the partners, said: “Over the past four years, Aurora LNG has been conducting a thorough feasibility study on liquefying and shipping LNG from the northwest coast of 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.
“While disappointed in this outcome, Aurora LNG is proud of its work in northwest British Columbia over the past three years and the relationships it has built with local community members, indigenous groups, stakeholders and government.
“The partners’ are committed to a responsible and orderly conclusion of their activities in the Prince Rupert region.”
Upstream operations from the partners’ Horn River natural gas assets in northeast British Columbia will continue.
The partners will also monitor the North American gas market to evaluate future upstream and downstream investments according to market conditions.