Petronas pulls out of northwest LNG project

Officials say low prices and shifts in energy industry made the decision necessary.

Pacific NorthWest LNG says it will not be proceeding with the $36-billion liquefied natural gas megaproject it had planned to build in British Columbia.

The consortium says the announcement by Petronas and its partners comes after a careful review of changes in market conditions.

Anuar Taib, executive vice-president and CEO (upstream) for Petronas, says prolonged depressed prices and shifts in the energy industry made the decision necessary.

LNG prices have been hit by a global oversupply as numerous projects have come online, challenging the economics of the development and others that were proposed in the province.

The consortium has already sunk billions into developing the natural gas fields in the B.C. interior, but the project would have required much more investment including an $11.4-billion LNG terminal in Port Edward, B.C.

The project, which secured Prime Minister Justin Trudeau’s approval last year, was proposed as a way to reduce coal use in Asia, but it has also faced criticism for the potential greenhouse gas emissions that would have resulted.

 

(Screenshot of Pacific Northwest LNG website)

Just Posted

VIDEO: Orcas put on a show near Hornby Island

Louis Jobodin shares photos and video of his experience

Passengers bound for Victoria say Sunwing left them stranded in Abbotsford

Company says late arrival led to difficulties securing accommodation, transportation

Island-filmed TV series gets third season

Crews returning to Parksville Qualicum Beach to film in the spring

Ladysmith marijuana producer bought by Aphria in $230M deal

Ontario licensed marijuana producer Aphria has reached an agreement to acquire Ladysmith-based… Continue reading

Sutherland steps down as SOS executive director

From receptionist to executive director

Views in The NEWS, Jan. 16

We asked: What is a necessity for you on a camping trip?

Did you get Hitched in Courtenay on Sunday?

The first annual wedding show saw big crowds and included two fashion shows

Vernon to host largest Special Olympics B.C. Winter Games in 2019

Games to be held Feb. 21-23, with more than 800 athletes expected to take part

Sentencing hearing begins for ex-BC Liberals employee in ‘quick wins’ scandal

Former communications director Brian Bonney pleaded guilty last October

Ice dancers Virtue and Moir to carry flag for Canada at 2018 Olympics

The pair earned a gold medal at the 2010 Vancouver Olympic Games

UPDATE: Police continue to seek missing Qualicum Beach woman

Oceanside RCMP requesting public assistance in locating Carmel Georgina Gilmour

Corfield Street work continues in Parksville

Delays, alternating traffic can be expected

Highway maintenance to cause delays in Whiskey Creek

Alberni Highway motorists face lane closures morning of Jan. 18

Most Read