05 June 2009

Gas facility joints list of energy projects in NL on hold

CBC news is reporting on Friday that Newfoundland LNG has shelved plans for a natural gas transhipment facility at Grassy Point, Newfoundland pending improvements in world natural gas and capital markets.

There’s no other reporting of the decision nor does the company have anything on its website about the project since it received environmental approval last August.

Construction had been expected to start this summer, according to CBC.

The company was confident the project would start construction in early 2007 however there were reasons to doubt project’s future 2008, as Bondpapers noted in April, August and October.

This is the cancellation of the third major project for northern Placentia Bay.  A proposal to build a second refinery collapsed in 2008 and earlier this year, owners of the Come by Chance oil refinery announced that expansion plans for that facility were on hold indefinitely.