KUALA LUMPUR, MALAYSIA — The proponent of the now-cancelled Pacific NorthWest LNG project is said to be considering acquiring a minority stake in the Shell-led LNG Canada project.
The Globe and Mail is reporting that Petronas is now looking at ways to move natural gas from northeast B.C. to foreign markets after scrapping Pacific NorthWest LNG in late July. The Malaysian state-owned corporation could acquire a 15-per-cent interest in LNG Canada that is currently held by Korea Gas Corp. The company is also said to be exploring whether it is viable to transport gas from B.C. to the U.S. Gulf Coast through existing pipelines.
Shell has a 50 percent stake in LNG Canada, ahead of PetroChina Co. Ltd. with a 20 percent stake, while both Kogas and Mitsubishi, each have a 15 percent stake. LNG Canada forecasts that it would need to invest up to $40-billion on construction for the export terminal. Industry analysts consider LNG Canada to be a long shot, and point out that the project would require TransCanada to build the proposed $4.7-billion Coastal GasLink pipeline from northeastern British Columbia to Kitimat.
However, on his first full day in office, B.C. Premier John Horgan told Energeticcity.ca that his government would approve the project if the consortium made a positive final investment decision. “It has all of its permits in place, has social license from First Nations in the region, has the support of the community, and is waiting for economic conditions to turn around, and that project will proceed,” said Horgan.
LNG Canada delayed its final investment decision last year, but confirmed in a statement on Monday that it continues to scrutinize the project.