VANCOUVER, Dec. 3, 2014 /CNW/ - PETRONAS announced today that the Government of British Columbia and Pacific NorthWest LNG have brought resolution to key provincial policy matters that provide added certainty required for advancing development of the proposed liquefied natural gas (LNG) facility in Port Edward, British Columbia.
"I wish to extend my appreciation to the Government of British Columbia for its leadership towards achieving this key milestone," said Tan Sri Shamsul Azhar Abbas, President and Group Chief Executive Officer of PETRONAS. "Premier Clark and Minister Coleman have been resolute in their commitment to bring a nascent LNG industry in British Columbia to fruition."
In recent months, British Columbia met its commitment to put in place a competitive LNG Income Tax, details for offsetting greenhouse gas emissions, plus new agreements with First Nations, including recent legislation with the Nisga'a Nation so that its people can benefit if Pacific NorthWest LNG moves ahead.
"British Columbia is on schedule to build a liquefied natural gas industry and secure new economic growth," said British Columbia Premier Christy Clark. "I am pleased we have furthered our prospects to supply clean natural gas to international markets by reaching another milestone with Pacific NorthWest LNG."
PETRONAS and its partners in the Pacific NorthWest LNG project continue to review the economic viability of the project which, in a time of declining oil prices, presents challenges.
Consequently, PETRONAS and its partners have decided to defer the project's $36 billion Final Investment Decision (FID) pending 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.
"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.
PETRONAS, through its upstream unconventional company, Progress Energy Canada Ltd. and its partners, will continue to invest in its natural gas development in British Columbia at a measured pace until such time as a positive FID is made. The Pacific NorthWest LNG project, if developed will position Canadian LNG on the world map of LNG suppliers.
"Pacific NorthWest LNG represents a tremendous opportunity to lead our province into a new energy future," said Deputy Premier and Minister of Natural Gas Development Rich Coleman. "We have 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 our province."
SOURCE: Pacific NorthWest LNG Ltd.
For further information: Media Contact: Spencer Sproule, Senior Advisor, Corporate Affairs | Pacific NorthWest LNG, 604.828.7680