Shell to Build Canada Water Project to Make Up for Lost Capital

Royal Dutch Shell Plc, which announced plans to give up exploring for natural gas in northwest British Columbia’s Klappen area, has agreed to build a water recycling project to help make up for lost capital.

Shell Canada will construct the project though the issuance of C$20 million ($20.3 million) in royalty credits support from the province in recognition of “upfront capital spent by the company” in an area of cultural and spiritual value with “vital salmon-bearing waterways such as the Stikine, Nass and Skeena rivers,” the province said in a statement.

Close relations with aboriginal communities are important so the company will “now focus on growth opportunities with better commercial and geological prospects in northeast British Columbia,” Lorraine Mitchelmore, president and country chair of Shell Canada, said in the statement. “Good water management is central to sustainable operations.”

Annita McPhee, president of the Tahltan central council, said, “We want to acknowledge Shell for its decision to respect the wishes of the Tahltan Nation by giving up its plans to develop coal-bed methane in the Klappan.”

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