Natural Resources

Shell delays decision on B.C. LNG project

By Jacob Parry /

LNG Canada’s office site in Kitimat

THE#BCBIZDAILY
Plus, Fort St. John will be compensated for the effects of Site C and Lionsgate buys rights to iconic children’s book series

Shell delays decision
Royal Dutch Shell has postponed its expected final investment decision on LNG Canada’s planned liquified natural gas terminal in Kitimat, a project pegged at between $25 billion and $40 billion. In its fourth-quarter financials, the company pushed that decision—which it expected to make early this year—to late 2016.

“We are postponing the final investment decision on LNG Canada right through the end of this year,” said Royal Dutch Shell CEO Ben van Buerden on a call with analysts and investors following the quarterly release. Shell holds a 50 per cent stake in LNG Canada, with partners PetroChina Co. Ltd, which holds a 20 per cent stake, and Mitsubishi Corp. and Korean Gas Corp., which both hold 15 per cent stakes.

Dam terms
BC Hydro and the city of Fort St. John have reached an agreement that will compensate the city for the effects of the $8 billion Site C dam construction project next door. The multi-year agreement-in-principle includes a $1-million annual payout to the city during the years the dam is under construction and various payments totalling just under $1 million to not-for-profits and charities that work in the region.

A magic treehouse
Lionsgate, the Vancouver-based film producer, has acquired the rights to the Magic Tree House book series and plans to make multiple live-action films based on the best-selling collection of children’s books. The terms of the deal, including payment, were not disclosed. The 54-volume series, which has sold 130 million copies, follows two young children on adventures to places throughout history via a time-travelling treehouse in the back garden. Lionsgate did not release a production timeline but it said the first installment—for which a script has already been written—will be based on the book Christmas in Camelot. Little need to guess the release date on that one. Late last year, Lionsgate bought the rights to Blade Runner, which is currently in production and being directed by Canadian Denis Villeneuve.