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

GALLERY: Storm causes damage along the waterfront in Greater Victoria

Municipal crews are cleaning up Monday following Sunday’s high wind and waves

Woodwynn Farms to be shut down and sold

The rehabilitation program at Woodwynn Farms is being shut down. According to… Continue reading

FISHING ADVENTURES: Winter fishing season in full swing

Upcoming fishing events include Local Pub’s Salmon Superbowl Derby and Victoria Boat Show

Victoria Women’s March draws hundreds

Pink pussy hats aplenty as demonstrators took to downtown streets

Sooke Riptide soccer team advances to Lisa Cup Finals

Riptide defeats Gorge in shootout on Saturday afternoon

Backyard of $2.2M Uplands property bulldozed for BMX jump track

34-year-old financial advisor fulfills childhood dream

Butchart Gardens is hiring now and paying more

Wages start at $15, job fair Feb. 20

Coal dust escaping rail cars spurs B.C. petition

Local governments are on board with Shuswap resident’s request for better control of escaping particulate

Cash still needed for Stelly’s Cross Path

MLA Olsen wants more specifics first

Vikes women run to 6-0, win first rugby sevens tourney of season

UVic Vikes this week: Hoops teams host shoot for the cure

Lawyers slam ‘de facto expulsion’ of student guilty of sexual interference

Calgary student guilty of sexual assault of a minor allowed to finish semester

B.C. NDP set to restructure union bargaining

School trustees to regain control over employer group

A new development surrounding plane that went missing around Revelstoke in November

The family of Ashley Bourgeault believe they have found a new clue

$130K could get you on a dive to the Titanic

Hot summer ticket: $130K could get you on a dive to the Titanic off Newfoundland

Most Read