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Petronas sticks to LNG plan
Malaysia’s state-owned Petronas and a senior British Columbia cabinet minister are brushing aside comments by analysts that low oil and natural gas prices are putting the brakes on final approval of the C$36 billion Pacific NorthWest LNG project.
The company, which heads a consortium of six joint-venture partners, said it remains committed to building a liquefaction facility and terminal that will account for C$11.4 billion of the budget despite volatile energy markets.
“Petronas would like to reaffirm its commitment to deliver long-term LNG supply to its customers (through the project),” said the company’s Executive Vice President Wee Yiaw Hin.
“Together with its partners (two from China and one each from Japan, India and Brunei), Petronas is ready to proceed with the project on the condition that it receives the remaining regulatory approval from the Canadian Environmental Assessment Agency (expected in early 2016),” he said.
Columbia’s Natural Gas Development Minister Rich Coleman said the statement was consistent with what the partners said at a Vancouver meeting earlier in October.
Environmental approval needed He said the only issue holding up the project is a Canadian government environmental approval which is expected after the federal election on Oct. 19, which will be followed by a 30-day public comment period and final federal cabinet decision.
Coleman said he has “a lot of confidence” that Petronas remains focused on proceeding.
But he also agreed that there are unresolved matters with the Lax Kw’alaams First Nation on the location of a terminal on Lelu Island near Prince Rupert.
“We work with First Nations to find long-term solutions and we will,” Coleman said.
Wee said Pacific NorthWest has “fulfilled the required technical and commercial components of the project and is looking forward to meeting future LNG market demands.”
Moody’s Investors Service said earlier this year that Pacific NorthWest is the best bet among the 20 LNG projects in British Columbia to forge ahead.
- GARY PARK
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