Japan's Idemitsu Shelves Canadian LNG Project

Japan’s Idemitsu and its Canadian joint venture partner Altagas have suspended work on Triton LNG project in northern British Columbia due to adverse market conditions.

The Japanese firms provided this information in its annual results issued Tuesday.

AltaGas and Idemitsu formed a 50:50 joint venture in 2013 to pursue opportunities involving exports of LPG and LNG from Canada to Asia.

Triton LNG project had envisaged a facility capable of processing 2.3 million tonne of LNG per year. In 2014, the National Energy Board had approved an application by Triton LNG Limited for a 25-year licence to export LNG.

Japan is Asia's biggest consumer of LNG. Country’s gas demand has grown since March 2011 when an earthquake and tsunami triggered a nuclear crisis at the Fukushima Daiichi power plant, prompting the country to look at other sources of energy.