Royal Dutch Shell Plc said this week that it is retreating from its development of the Carmon Creek thermal oil sands project in northern Alberta and will take an expected $2 billion restructuring charge as a result.

The company cited falling oil prices and a lack of pipeline capacity in Canada as the reason for its decision.

“We are making changes to Shell’s portfolio mix by reviewing our longer-term upstream options world-wide, and managing affordability and exposure in the current world of lower oil prices. This is forcing tough choices at Shell,” the company’s CEO Ben van Beurden said in a release.

The announcement reverses a Shell decision from March, when the company said it would alter the pace at which it was developing Carmon Creek, an 80,000 barrel-per-day project.

At the time, Shell said it was re-phasing the oilsands project in response to low oil prices, to take advantage of a decline in costs and to schedule its start up date with a potential oil price recovery.