Petronas LNG delay not due to B.C., Coleman says

Malaysian-led project still needs federal approval for site, CEO concerned about U.S. competition for gas exports to Asia

Lelu Island at the Prince Rupert port is the proposed location for an $11 billion LNG export terminal.

Malaysian oil and gas giant Petronas has put off its final investment decision on a large-scale liquefied natural gas project until some time in 2015, but it’s not because of B.C.’s taxes and conditions, says Natural Gas Development Minister Rich Coleman.

Pacific Northwest LNG, a consortium led by Petronas for a pipeline and terminal at the Prince Rupert port, issued a statement Wednesday citing construction costs and federal approvals it still needs for a pipeline and plants worth $36 billion.

“Costs associated with the pipeline and LNG facility remain challenging and must be reduced further before a positive final investment decision can be undertaken,” the statement says. “At the same time, Pacific Northwest LNG will continue to work to secure necessary regulatory and other approvals from the government of Canada.”

Coleman said he was consulted on the statement and remains optimistic about the project going ahead. The province set its tax and greenhouse gas rules for LNG projects during the fall legislature session, and completed agreements with the Nisga’a Nation to allow a gas pipeline to pass through their territory to the coast.

“It was always clear that once they got our piece completed, they would move on to making sure their numbers across the board with their partners work,” Coleman said. “That’s the pipeline, the upstream cost for gas plants, that’s the LNG plant itself, which they would build in Port Edward.”

Petronas CEO Shamsul Azhar Abbas said the decision will be made as soon as possible.

“This is vital in light of the current intense market environment and for Pacific Northwest LNG not to lose out on long-term contracts to competitive United States LNG projects,” Abbas said.

NDP natural gas critic Bruce Ralson called the decision “a setback,” noting that BG Group also cited U.S. competition in its recent decision to delay a final decision on its project for the Prince Rupert area.

 

Just Posted

Little Qualicum Cheeseworks cheese linked to 5 E. coli cases in B.C.

People are asked to throw out or return ‘Qualicum Spice’ cheese

Jim’s Clothes Closet celebrates 50th anniversary

Store began in Port Alberni, expanded on Vancouver Island and beyond

BC Ferries passengers wait to leave Vancouver Island after Remembrance Day

Traffic aboard BC Ferries slows after Remembrance Day long weekend

Recent CVGSAR rescues see varying degrees of success

Teams searched for a dog swept downstream and helped an 80-year-old hiker

Comox Valley Nature invites the public to learn about nature photography

Comox Valley Nature is hosting a public lecture on photography. Join Terry… Continue reading

VIDEO: Amazon to split second HQ between New York, Virginia

Official decision expected later Tuesday to end competition between North American cities to win bid and its promise of 50,000 jobs

Kuhnhackl scores 2 odd goals as Isles dump Canucks 5-2

Vancouver drops second game in two nights

Comox Valley Nature invites the public to learn about nature photography

Comox Valley Nature is hosting a public lecture on photography. Join Terry… Continue reading

Student arrested at Vancouver Island elementary school

Pupils never in danger, incident unrelated to the school

Contest: Win a movie pass for two

It’s that time again - free movie passes! The Record is giving… Continue reading

Vancouver Island remembers

Important stories shared as Islanders salute those who made the greatest sacrifice

Stink at B.C. school prompts complaints of headaches, nausea

Smell at Abbotsford school comes from unauthorized composting operation

Fear of constitutional crisis escalates in U.S.; Canadians can relate

Some say President Donald Trump is leading the U.S. towards a crisis

B.C.-based pot producer Tilray reports revenue surge, net loss

Company remains excited about ‘robust’ cannabis industry

Most Read