Norway’s Equinor decided that due to rising costs, the company will delay its Bay du Nord Canadian offshore oil project for up to three years, Reuters reported.
The announcement is a back step to one of Canada’s biggest oil projects in years, and one which has the rare support of Prime Minister Justin Trudeau’s government. Ottawa backed Bay du Nord saying that it would produce relatively low emissions.
“Bay du Nord is an important project for Equinor. Within the context of the changing market with increased cost, we will now look at the project again to see if we can do further optimizations to our concept and strategies,” said Trond Bokn, Equinor’s senior vice president, Project Development, in a statement.
Newfoundland & Labrador Premier Andrew Furey said he was disappointed, but still hopeful the project will proceed.
“The company has assured me that this is largely market forces at play and it’s not a cancellation.”