CNOOC Ltd's Nexen Energy and Inpex Corp are ending the feasibility study for the Aurora liquefied natural gas project in British Columbia.
"Aurora LNG has determined that the current macro-economic environment does not currently support the partners’ vision of developing a large LNG business," Nexen said in a statement Thursday.
CNOOC and Inpex had been working together on their Aurora plan since 2013. They were eyeing Digby Island for the facility and export terminal.
The partners didn't shy away from underscoring the potential economic payoff from the project. They pegged construction costs at $28 billion, with up to 600 jobs potentially created throughout the project's lifespan.
Their decision to pull the plug is the major second setback for B.C.'s LNG industry this summer.
In July, Petronas and its partners gave up on their proposed Pacific NorthWest project in Port Edward, B.C. At the time, Petronas CEO Anuar Taib cited an "extremely challenging environment."
-- With files from Reuters