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

Rainbow crosswalk coming to Chilliwack school district parking lot

Fractious debate at school board meeting ends with 4-3 vote

Hard rock tribute band Led Zepagain returns to Chilliwack Cultural Centre

‘It’s as close as you’ll ever get to the real deal,’ says Led Zeppelin founder Jimmy Page

Mayor and city staff stay mum on possible Abbotsford aerospace plant

Economic development staff have met with a U.S. firm looking for places to build a large plant

Chilliwack chef comes home to offer ‘super-addicting’ flavours at Royal Hotel

Jason and Miranda Harper took ownership of the Royal Hotel Café and Wellington Local House in August

Highway 1 closed at Herrling Island

Westbound traffic is stopped, and some cars have been seen driving the wrong way on the highway

‘It’s almost surreal’: B.C. fire chief, sidekick Sammy recap rescue mission in Bahamas

Chief Larry Watkinson and Sam the disaster dog spent 8 days assisting a search and rescue team

Break out the tiki torches: Open fires allowed again in B.C.’s coastal region

All open fires allowed effective at noon on Sept. 18

Vaping-related illness confirmed in Ontario believed to be first in Canada

Middlesex-London Health Unit had no further details about the case — believed to be the first confirmed in Canada

Canadian stars Virtue, Moir say in video they’re ‘stepping away’ from ice dancing

The pair thank fans for their support in an emotional message

Kamloops high school evacuated after receiving threat

Police have not released any further details into what the threat includes

Woman held at gunpoint during carjacking in UBC parkade

University RCMP say the vehicle is still missing, and two suspects are at large

VIDEO: Angry B.C. cyclist starts shaming dangerous drivers online

‘You motorists deserve all your costs and misery’

‘Time to take action:’ Children advocates call for national youth suicide strategy

Council wants Ottawa to make reporting of suicides and attempted suicides mandatory for data collection

Canadian inflation decelerates to 1.9% as gas prices weaken

August was the sixth straight month that price growth was 1.9 per cent or higher

Most Read