Natural Gas Development Minister Rich Coleman (left) and Premier Christy Clark tour Petronas gas import facilities in Malaysia in May.

Petronas gives deadline for LNG deal

Malaysian investors warn of lower gas price, high cost and regulation as B.C. prepares tax on LNG exports

Malaysia’s state-owned energy company has issued another public warning to the B.C. government that it could push back its investment in liquefied natural gas by 10 or 15 years.

Petronas CEO Shamsul Azhar Abbas issued a statement Monday describing a softening global market for natural gas and oil, and renewing criticisms made public in September about Canada’s tax and environment rules.

The latest shot across the bow from the leader of B.C.’s largest LNG project comes as the B.C. legislature meets for a rare fall session. The government’s main business in the two-month sitting is to authorize a provincial tax on LNG exports in addition to the royalties paid to the province for gas from northeastern B.C.

“The proposed fiscal package and regulatory pace in Canada threatens the global competitiveness of the Pacific Northwest LNG project,” Abbas said. “This is further exacerbated by preliminary project costs, which indicates cost of local contractors to be higher and not benchmarked to global contractor’s cost.”

Premier Christy Clark and Natural Gas Development Minister Rich Coleman met with Petronas last week and agreed to have the tax arrangements completed by the end of October, allowing an investment decision by the end of the year.

The consortium led by Petronas also has to pass provincial environment assessment, including air pollution limits on its gas-fired LNG compressors.

The project has marine impacts from its proposed terminal on Lelu Island near Prince Rupert, which requires approval of Fisheries and Oceans Canada for its effect on salmon and ocean habitat.

Petronas is leading a consortium that includes Chinese, Japanese, Indian and Brunei investors for a pipeline and LNG processing in northern B.C. Petronas paid $5 billion last year to take over Progress Energy Canada, which has major shale gas holdings in northeast B.C. and Alberta.

 

Just Posted

Northern Silica promises residents new haul road

Hartley Road residents gathered on Feb. 6 to discuss promises from the… Continue reading

Turning Back the Pages: Prospecting and mining history from 1899

This information was requested by John Manuel from Golden Memories in 1958,… Continue reading

Short term rentals have an impact on long term housing across the world

A community survey and four focus groups have highlighted what the community… Continue reading

Rockets unable to win against Dynamiters, Izzy Palumbo takes net in second period

The Golden Rockets were unable to beat out the Kimberly Dynamiters on… Continue reading

Council comes up with a plan to allow food trucks

Food trucks have been a staple in communities for a long time.… Continue reading

REPLAY: B.C. this week in video

In case you missed it, here’s a look at replay-worthy highlights from across the province this week

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Body of missing skier found

Man’s truck found in Revelstoke Mountain Resort’s parking lot covered in ‘several days’ snow’

B.C. VIEWS: Subsidy supercluster settles in B.C.

Ottawa, Victoria add to their overlapping ‘innovation’ budgets

OLYMPIC ROUNDUP: Canada’s first ever men’s ski slopestyle medal

Men’s hockey team beats South Korea and women’s curling reverses losing streak

Canada’s Beaulieu-Marchand wins bronze in Olympic slopestyle

The skier from Quebec City scored 92.40 on his second run

Russian athlete suspected of doping at PyeongChang Olympics

The case could be an obstacle to Russia’s efforts to have the Russian team formally reinstated

Canadians place second in first heat of two-man bobsleigh

Justin Kripps and Alexander Kopacz finish 0.02 seconds behind Latvian team in Winter Olympics

Most Read