Petronas to advance Canada LNG project under two conditions – StarPhoenix
A Petroliam Nasional Bhd.-led group of companies elected to proceed with a $36-billion natural gas shipping project on Canada’s Pacific Coast with conditions, marking the first investment decision in the nascent industry.
The liquefied natural gas project still needs British Columbia lawmakers to endorse a deal on royalties and taxes that the government signed with Pacific NorthWest LNG, the developer. It also needs to pass a federal environmental review, the venture said in a statement.
The export terminal backed by Petronas, as the state-run Malaysian company is known, is among 19 proposed in British Columbia to ship western Canadian gas to Asia. It’s been about six months since the venture deferred a final decision to proceed, as it sought to bring down costs and navigate energy market fluctuations from the oil price collapse. The project continues to face opposition from some aboriginal groups.
“This is really a positive step and a positive signal,” Michael Culbert, president of Pacific NorthWest, said in a phone interview. He committed to continue consulting with aboriginal communities. “Petronas and the partners of Pacific NorthWest are now in a position to support the commercial aspects of the project and move it forward.”
