U.S. oil major ExxonMobil has withdrawn its WCC liquefied natural gas (LNG) export project in Canada from an environmental assessment, it said on Thursday, effectively signalling that the project has been shelved.
The so-called WCC LNG export project in Canada's British Columbia was expected to produce around 15 million tonnes per year of LNG, with plans for further expansion up to 30 million tonnes per year.
Legislation in British Columbia requires large projects to obtain an Environmental Assessment Certificate before they can be developed.
An examination of this project by the Canadian Environmental Assessment Agency has been going on since Feb. 2015.
"After careful review, ExxonMobil and Imperial (Oil Resources Limited) have withdrawn the WCC LNG project from the environmental assessment process," a spokeswoman for ExxonMobil said in an emailed comment.
"We remain committed to our Canada operations and to ensuring the safe and reliable delivery of oil and gas to our customers," she added.
LNG demand is growing but environmental groups say exports will boost carbon emissions in Canada, both through gas extraction and the liquefaction process.
The WCC LNG export project planned to have liquefaction and storage facilities for natural gas, loading facilities and third-party pipeline facilities.
(Reuters, Reporting by Ekaterina Kravtsova; editing by Nina Chestney and Alexandra Hudson)
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