BC LNG project scrapped due to 'changes in market conditions'

Paterniano Del Favero
Luglio 27, 2017

Petronas said it was pulling out of its Can$36 billion ($28.8 billion US) liquefied natural gas exporting project on Canada's west coast long opposed by environmentalists and native rights activists.

The decision by Petroliam Nasional Bhd (Petronas) and its partners not to proceed with the Pacific Northwest LNG project in Canada has drawn mixed reaction from the Canadian media.

The report said the death of the liquefied natural gas (LNG) project follows an "exodus of worldwide companies from Alberta's oil and gas sector for the same reasons: high costs including carbon taxes and slow regulatory processes compared to competing jurisdictions".

The pipeline built by the operator TransCanada would have had to cross 900 kilometres (560 miles) of British Columbia between Hudson's Hope and Lelu Island.

The company is attributing the decision to changing global gas market conditions, including falling prices.

Petronas, Malaysia's state oil and gas company, announced on Wednesday it was cancelling the project because of "the extremely challenging environment brought about by the prolonged depressed prices and shifts in the energy industry".

A total review of the proposed LNG facility was planned before a final investment decision was made.

"We, along with our North Montney Joint Venture (JV) 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".

A number of First Nations and environmental groups sued the federal government and Petronas unsuccessfully to try to stop the project.

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