Projects falling by the wayside

Thursday, 01 April 2021
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Exelon’s Annova LNG is to halt the development of its planned 6.5 mill tonnes per annum liquefaction facility in Brownsville, Texas.

The project developer cited “changes in the global LNG market” as the reason behind the decision, but it did not provide any additional information.

Elsewhere, Australia’s Victoria State this week rejected an AGL Energy plan to build an LNG import terminal.

The State’s Labour Government ruled against the project due to concern the import terminal would damage internationally recognised wetlands. It was opposed by an unusual coalition of environmental, indigenous and community groups alongside conservative politicians.

“It’s very clear to me that this project would cause unacceptable impacts on the Western Port environment and the Ramsar wetlands. It’s important that these areas are protected,” Victoria’s Planning Minister, Richard Wynne, said in a statement.

AGL has already spent A$130 mill on the Crib Point project.

The plan also involved a pipeline to be built by APA Group and an FSRU to be supplied by Höegh LNG.

AGL said it was considering its position.

The company first proposed importing LNG to Australia in 2016. Its plans were held up after opponents pressed for an extended environmental review, saying chlorinated, chilled seawater discharged by the FSRU could harm sea life and hurt tourism.

Meanwhile, Chevron Canada has stopped funding its proposed Kitimat LNG project in British Columbia.

The energy company has been trying to sell its 50% stake for more than 15 months.

In a recent update, the Chevron Corp subsidiary said it had been continuing to work on Kitimat LNG activities that add value or were required for regulatory and operational compliance since putting up its 50% stake for sale in December, 2019.

Chevron is the operator of Kitimat LNG, while the other 50% is owned by Australia's Woodside Petroleum.

Originally, about 20 LNG terminals were proposed for the Canadian West Coast but the $40 bill LNG Canada project managed by Shell Canada was the only one to reach the construction stage. 

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