NEWS
10/28/2015 12:27 EDT | Updated 10/28/2016 01:12 EDT

Alberta town disappointed with cancellation of Shell's Carmon Creek project

PEACE RIVER, Alta. — The mayor and council of a northwestern Alberta town are reacting to Royal Dutch Shell's announcement that it is scrapping its Carmon Creek oilsands project.

The project is near the town of Peace River.

The council said in a statement posted on the town website that it has caused great concern as Shell helped fund several community projects.

Mayor Tom Tarpey says his first thought was for those working on the project.

The town says the cancellation will not affect upgrades to Peace Regional Airport's upgrades.

Shell cited a lack of pipelines to coastal waters as one reason for the decision to cancel the project.

The European energy giant first announced it would build the 80,000-barrel-a-day, steam-driven operation in October 2013.

But last March, the company said it would slow down the project while attempting to lower costs and improve its design.

However, the company now says now the project doesn't rank in its portfolio — and one reason is the lack of infrastructure to get Canadian crude to global markets.

Peace River town council said it will be contacting federal and provincial politicians to "outline our need for greater infrastructure in the north to support industry development.

"That means pipelines but also roads, railways, bridges, and market access to ensure the long-term sustainability of our industries."