From www.theobserver.ca The Observer
Shell Canada says it is hitting the pause button on plans for a liquified natural gas (LNG) processing unit at its Corunna refinery.
The company said last March it was adding small-scale gas liquefaction units at its Sarnia Manufacturing Centre near Corunna, as well as at a facility in Louisiana, aimed at the commercial transportation markets.
“We did inform employees (Wednesday) that Shell is pausing the ongoing development of the liquefaction units that were planned for both Geismar, Louisiana and the Sarnia Manufacturing Centre,” Shell spokesperson Randy Provencal said Thursday.
“It’s going to allow us an opportunity to review our broader LNG-for-transport opportunities in North America, really, so that we can ensure that we have a flexible and competitive portfolio.”
The project, planned for five to 10 acres at the Shell facility, was expected to create a few hundred construction jobs, as well as 10 full-time refinery positions operating the unit that would cool natural gas to turn it into a liquid.
“Certainly, we’re disappointed to hear that it’s not going ahead,” said Ray Curran, spokesperson for the Sarnia Construction Association.
“We need capital projects in the community here.”
But, Curran added Shell officials have assured the association the company has long-term plans in the community.
“For the next 20 years, this plant is going to be in Sarnia, we feel,” he said.
Lambton County Warden Todd Case called the news “very unfortunate,” but added his hope is that “the project does still happen, in the very near future.”
Provencal said he wasn’t able to say how much money the company was planning to spend on the LNG unit at Corunna.
Shell had five employees working at the refinery site on the project, who will deployed to other projects within the site, Provencal said.
Shell said in March 2013 that each of the new units it was planning to build would be able to produce 250,000 tones of LNG. They were originally expected to be operating two years from now.
“Of course, news like this comes as a disappointment,” Provencal said regarding reaction at the Corunna facility.
“It’s a setback for us, however the future is bright for the Sarnia Manufacturing Centre, and for Shell in this community.”
He said Shell has “a number of growth projects that we’re working towards, right now.”
Several years ago, Shell considered building a new multi-billion dollar refinery near Courtright but officially pulled the plug on that proposal in July 2008 after two years of study and planning.
Last year, Shell said the Ohio-based Interlake Steamship Company was expected to be its first marine customers for LNG on the Great Lakes.
Interlake later announced it had reached an agreement in principle with Shell for a supply of LNG for ships it was planning to convert to the fuel.
“I can’t speak to specific companies or contracts,” Provencal said when asked about the agreement with Interlake.
“We believe in the opportunities that were identified in these corridors, the gulf coast corridor and the Great Lakes corridor, but we want to ensure they’re going to provide the best value for Shell and our customers,” he said.
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