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

Vernon student off to UBCM with council

Cadence Taron, a Grade 12 student at Fulton Secondary, applied to attend annual convention

City of Vernon to develop Civic Arena site into park

Planning process approved by council; construction to start in 2020 or 2021

Vernon RCMP superintendent helps with arrest

Supt. Shawna Baher arrests man for theft; turns out to be suspect in assault and robbery

Vernon Vipers open BCHL training camp

Defending Interior Conference champs open pre-season slate Friday at home vs Grande Prairie (AJHL)

No costs as directed upsets Vernon councillor

Scott Anderson and council still waiting for as-directed costs on hiring private security firm

VIDEO: Could we BE any more excited? ‘Friends’ fans go crazy for merch

Movie theatres will show select episodes to mark the NBC series’ 25th anniversary

Penticton man sentenced in non-fatal 2017 shooting

Elkena Michael Knauff sentenced to seven and a half months in jail

Bodies of two missing Surrey men found near Ashcroft

Ryan Provencher and Richard Scurr have been missing since July 17

Kamloops RCMP locate and arrest man who fled from police

The 22-year-old male was wanted in relation to a domestic violence investigation

Five hedgehogs quickly adopted after being left at BC SPCA

Lucky new owners picked up their pets from Maple Ridge branch on Aug. 20

COLUMN: Much to enjoy at Ryga Arts Festival

As I learn about George Ryga and his contributions, it is clear why this festival carries his name

Kelowna man arrested after allegedly setting blaze near Fire Department

The man was allegedly seen lighting bushes on fire near the Kelowna Fire Department

B.C. cricket players get interrupted by racist remark

Community has had protocols in place for years to respond to prejudice

Most Read