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

Castlegarians march against gun violence

Castlegarians showed their support for students in the U.S. speaking out against gun violence.

2017 year of change at Castlegar Library

Last year was a year of transition for the Castlegar District Public Library.

Local snowmobiling icon Davidoff remembered by his sister

Kelly Davidoff’s fond memories of brother Danny

Needles killer frightened many in our town: BC author

Roy Bugera disrupted life in a quiet Vancouver Island village before moving to Arrow Lakes

UPDATED: Castlegar Rebels lose playoff series to Nelson Leafs

The Castlegar Rebels lost their second-round playoff series against the Nelson Leafs on Monday.

REPLAY: B.C. this week in video

In case you missed it, here’s a look at replay-worthy highlights from across the province this week

Anti-pipeline protestors block Kinder Morgan tanker near Seattle

Protest was spurred on by the 28 anti-Kinder Morgan activists arrested in Burnaby

Some surprises in new book about B.C. labour movement

“On the Line” charts history of the union movement back to the 1800s

B.C. cyclist races to first win of the season in New Zealand

Casey Brown captures Enduro title by more than two minutes at Crankworx Rotorua

Notorious Russian troll farm also took swipes at Canadian targets

Targets included oil infrastructure and Prime Minister Justin Trudeau.

Cirque du Soleil aerialist dies after fall during Florida show

Longtime performer fell while performing in VOLTA

Canada earns second Paralympic Games silver in 20 years

Held 1-0 lead in para hockey game from 12:06 of first to dying seconds of third and lost in overtime

LETTERS: Two views of oil pipeline protests

U.S. and other petroleum-rich countries aren’t cutting production

Canadian Paralympic team picked up record 28 medals

The 55 athletes strong had set a cautious goal of 17 medals for PyeongChang

Most Read