Contrary to recent media reports that Petronas is looking to ditch the $11.4 billion Pacific NorthWest LNG project, the Malaysian giant said Wednesday it is moving towards the financial investment decision.
National Post, a Canadian newspaper said earlier this week that Petronas has been put off by the newly proposed climate-change priorities revealed by the new prime minister Justin Trudeau, allegedly threatening to walk away from the project.
However, in its response to the reports, Petronas said it is awaiting the completion of the Canadian environmental impact assessment process for the PNW LNG project, which is still ongoing. The company will then review the report “to further determine their impact on the overall cost structure and schedule of the project.”
Based on the outcome, combined with LNG market outlook and overall project commerciality, Petronas said it will develop the proposal for the final investment decision on the project.
Through its unit Pacific NorthWest LNG, Petronas is proposing to develop a natural gas liquefaction and export facility on Lelu Island in the District of Port Edward, British Columbia.
The proposed facility will comprise an initial development of two LNG trains of approximately 6 million tons per annum each, and a subsequent development of a third train of approximately 6 mtpa.
Petronas, Sinopec, JAPEX, Indian Oil Corporation and PetroleumBRUNEI are all shareholders in Pacific NorthWest LNG and the associated natural gas supply.
LNG World News Staff