Malaysian energy giant Petronas and its partners will not proceed with the development of the $27 billion Pacific NorthWest LNG project on Lelu Island in the district of Port Edward in Canada’s British Columbia province.
“The decision was made after a careful and total review of the project amid changes in market conditions,” Petronas statement reads.
The company’s executive vice president and CEO upstream, Anuar Taib, said the challenging environment brought about by the prolonged depressed prices and shifts in the energy industry led the partners to the decision.
“We, along with our North Montney Joint Venture partners, remain committed to developing our significant natural gas assets in Canada and will continue to explore all options as part of our long-term investment strategy moving forward,” Anuar added.
Petronas will look to develop its natural gas assets in Canada through Progress Energy.
To remind, Pacific NorthWest LNG project was planned to include two 6 mtpa liquefaction trains with an additional 6 mtpa train to be added subsequently.
The project received the environmental approval from the Canadian government in September 2016, however, Petronas has been reviewing the LNG market outlook and overall project commerciality ever since and decided to scrap the development plans.