LONDON, July 18 (Reuters) - Royal Dutch Shell saidit has suspended development of a liquefaction unit at Canada'sJumping Pound facility, which was to be used to develop theemerging gas for transport market.
"We believe LNG (liquefied natural gas) in transport is aconsiderable opportunity for Shell, but it is an emerging marketand we must have a balanced approach to its development," acompany spokseman said. "We have suspended development of theliquefaction unit at the Jumping Pound facility."
He added that it was continuing work in the Canadian GreenCorridor project and the retail LNG program with Shell Flying Jin Canada.
The shale gas production boom has pulled down natural gasprices in North America, making LNG competitive with oil in thetransport sector, but development costs remain high.
(Reporting by Henning Gloystein and Ron Bousso, editing byWilliam Hardy)