Petronas says their decision is based on concerns about the project’s economic viability and competitive edge among other LNG producing countries – attributed to declining oil prices. However, they go on to say “Pacific NorthWest LNG will continue work to secure necessary regulatory and other approvals from the Government of Canada.”
“Petronas hopes that all outstanding factors can be resolved as soon as possible to enable the Final Investment Decision to be made within the identified LNG supply and demand window,” President and Group Chief Executive Officer of Petronas, Tan Sri Shamsul Azhar Abbas said in a written statement. “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.”
Pacific NorthWest LNG adds, “Petronas, through its upstream unconventional company, Progress Energy Canada Ltd. and its partners, will continue to invest in its natural gas development in British Columbia at a measured pace until such time as a positive FID is made.”
The project, which has an estimated $36 million dollar FID attached, was seemly in a favourable position, having vocally supported the provinces LNG Income Tax, details for offsetting greenhouse gas emissions, as well as new agreements with First Nations, including recent legislation with the Nisga’a Nation.
The LNG terminal is slated for Lelu Island in Port Edward.