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

How many volunteers does it take to run a hockey team?

Meet the momma bears who make the Revelstoke Grizzlies’ games happen

Niedermayer jersey retirement ceremony a dream come true

Penticton minor hockey players bring home memories of a lifetime from Niedermayer jersey retirement

B.C. Interior free from measles

Vancouver measles outbreak hasn’t spread to the B.C. Interior

UPDATE: Tractor trailer overturned on Highway 3A near Yellow Lake

Drivers may be wise to plan an alternate route as crews will need to recover the truck

Highway one will be closed tomorrow for avalanche control near Golden

The closure is expected to last for two hours

Branching out: learning to ski at Revelstoke Mountain Resort

It’s the first time at the hill for the editor of Revelstoke Review

Larch Hills junior skiers top Teck BC Midget Championships

Multiple top-five finishes contribute to aggregate team trophy

Manitoba ‘pauses’ link with ex-B.C. premier Gordon Campbell after allegations

Campbell had been hired to review two major hydro projects

Heritage minute features Japanese-Canadian baseball team, internment

The Vancouver Asahi baseball team won various championships across the Pacific Northwest

UPDATE: Woman, off-duty cop in critical condition after stabbing outside B.C. elementary school

The officer was interceding in an alleged assault when he and the woman were stabbed

Pool plans disappoint Shuswap swim clubs

Salmon Arm mayor assures options for city rec centre only preliminary

Vehicle fire on Coquihalla near Kamloops

A large plume of smoke could be seen rising into the sky over Highway 5

$10-a-day child care not in 2019 budget, but advocate not irked

Sharon Gregson with the Coalition of Child Care Advocates of B.C. says NDP on track to deliver promise

Shuswap children’s organizations offer mixed reviews on Budget 2019

Concern over long waitlists, early intervention funding, but relief child care funds are included

Most Read