May 15, 2018 / 5:48 PM / 9 days ago

LNG Canada committed to starting construction on project in 2018 -CEO

VANCOUVER, May 15 (Reuters) - The chief executive of the LNG Canada project on British Columbia northern coast said on Tuesday that the company was committed to starting construction on the C$40 billion ($31.1 billion) liquefied natural gas export project this year.

An investment decision on the terminal was delayed in 2016, due to sagging oil prices that hit cash flows, along with an unfavorable supply-demand outlook, but remains on track for 2018, Andy Calitz said at an LNG conference on Tuesday.

“It didn’t make sense in July 2016,” he said. “When (our stakeholders) asked the inevitable question, when will you reconsider the FID? Our answer was: We will be in construction in 2018. I reaffirm that commitment today.”

LNG Canada is a joint venture between Royal Dutch Shell Plc , PetroChina Co Ltd, Mitsubishi Corp and Korea Gas Corp. TransCanada Corp will build the pipeline. ($1 = 1.2871 Canadian dollars) (Reporting by Julie Gordon in Vancouver; Editing by Richard Chang)

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