Shell Canada has delayed plans to ramp up capacity at its Corunna refinery.
Late last year, the company had reached the select phase of a project to expand from 80,000 barrels per day to 95,000.
Spokesman Randy Provencal says a number of factors went into the decision including the economic situation in Canada and the need to complete other projects.
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Provencal says Shell is in a good position to move forward with expansion in Corunna at a later date.
The project would have seen the demolition of an old refinery unit and construction of a new one.
It would have created some 120 construction jobs and an undetermined amount of full time work.
