FORT ST. JOHN, B.C. – Malaysia’s state oil company Petronas might delay the PacifcNorthwest LNG project according to a article in the Wall Street Journal.
It says that two people familiar with the matter say that they are considering the delay because of concerns regarding oversupply and cheap competing fuels.
Petronas has supposedly put up around 1/3 of the $27.5 billion dollar project. The plan has been to start operations in 2019.
While the Canadian government is still deciding to approve the project or not, the next step would be Petronas and its partners confirm the final investment decision.
People familiar with the matter told The Wall Street Journal that the oversupply of LNG and lower oil and gas prices have made the project unattractive at the moment. They declined to say how long the delay could be.
According to the journal, LNG prices has been softening since 2014. Australia, Russia, and the U.S. are set to enter the market as well.
With files from YANTOULTRA NGUI, Wall Street Journal