Shell scraps Carmon Creek oilsands project

CALGARY -- Royal Dutch Shell is scrapping its Carmon Creek oilsands project in northwestern Alberta, citing a lack of pipelines to coastal waters as one reason for the decision.

The move comes after a review of the project's design and costs and where it stacks up against other projects Shell has in its portfolio.

The European energy giant first announced it would build the 80,000-barrel-a-day, steam-driven operation near Peace River, Alta., 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.