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

Parents and caregivers in Golden can become an ‘askable adult’ for sexual health

When you were young, did you feel comfortable asking the big questions… Continue reading

Some of Golden’s top stories in a Mountain Minute

Your Mountain Minute for April 18

TSB makes two safety advisories in probe of fatal train derailment near Field

The train derailment killed three crew members on board

There are many ways to be a sustainable consumer in Golden

Many people are coming up with ways to connect businesses and consumers… Continue reading

Fruitvale man identified in fatal zipline accident in Thailand

Spencer Donaldson, 25, was from Fruitvale, B.C., the city’s mayor has confirmed

VIDEO: Driver in bizarre hit-and-run at B.C. car dealership turns herself in

Police believe alcohol was a factor in incident causing estimated $15,000 in damages

‘B.C. cannot wait for action’: Top doctor urges province to decriminalize illicit drugs

Dr. Bonnie Henry says current approach in ‘war on drugs’ has criminalized and stigmatized drug users

B.C. woman, 76, challenges alcohol-screening laws after failing to give breath sample

Norma McLeod was unable to provide a sample because of her medical conditions

New report on 2017 wildfires calls for better coordination with B.C. First Nations

Tsilhqot’in National Government documents 2017 disaster and lists 33 calls to action

B.C. youth coach banned amid sexual harassment, bullying scandal: Water Polo Canada

Justin Mitchell can’t take part in Water Polo Canada events or clubs

Wilson-Raybould: Feds want to just ‘manage the problem’ of Indigenous Peoples

Former federal justice minister speaks at First Nations Justice Council meeting in B.C.

Boating incident claims life on East Kootenay lake

A young man has died after a canoe overturned in Moyie Lake early Tuesday morning

Female real estate agents warned of suspicious man in Metro Vancouver

The man requests to see homes alone with the female agent, police say

Can you put your phone down for Mother’s Day?

#DiningMode campaign encourages people to leave the phone alone while eating

Most Read