Malaysia’s Petronas and its partners decided to defer the Pacific NorthWest LNG project’s C$36 billion final investment decision.
According to a company statement, Petronas is looking for further clarity on substantive items of importance to ensure that critical project components align with economic viability of the project and competition from other LNG producing countries.
Costs associated with the pipeline and LNG facility remain challenging and must be reduced further before a positive FID can be undertaken. At the same time, Pacific NorthWest LNG will continue work to secure necessary regulatory and other approvals from the Government of Canada, PNW LNG statement reveals.
“Petronas hopes that all outstanding factors can be resolved as soon as possible to enable the Final Investment Decision to be made within the identified LNG supply and demand window. 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,” concluded Tan Sri Shamsul Azhar Abbas,President and Group Chief Executive Officer of Petronas.
Deputy Premier and Minister of Natural Gas Development Rich Coleman said that the province has put the foundation in place, including a competitive fiscal framework and skills training plan, to ensure Pacific NorthWest LNG has the assurance it needs to move forward with a final investment decision in British Columbia.
LNG World News Staff; Image: Pacific NorthWest LNG