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

Legion bell prank hits sour note

Anger erupts after Summerland Legion member removes bell from Peachland Legion

Fundraisers bring in more than $5,000 for food bank

Fundraisers organized by several residents in Keremeos brought in thousands for the local food bank.

Kelowna Parkinson’s SuperWalk team donates to local shelter

Good Vibrations donated $300 to Inn from the Cold

Keremeos eyeing 2 per cent tax increase

Early days for Keremeos budget deliberations but predictions are a slight increase.

Penticton teen reunites with paramedics who saved her life 17 years ago

Jayden Arnold was clinically dead when Roy Stanley and Derek Morris arrived to the scene

B.C. wine industry fights for interprovincial trade in Supreme Court

Gerard Comeau likely never thought he would end up in the Supreme… Continue reading

Vehicle with dog inside stolen from Oliver gas station

A black Honda CRV was stolen from the Oliver Chevron early Sunday morning

Team Canada loses 5-2 over the Czech Republic at World Junior A Challenge

Vees’ Tychonick drops in one of Team Canada West’s pair of goals

Site C decision coming Monday

Premier John Horgan to announce fate of dam project at B.C. legislature

California couple name daughter after Revelstoke

Revy Elle Atashroo was born on Nov. 27. Her name honours the town her parents loved exploring.

VIDEO: Vancouver Whitecaps acquire star striker Kei Kamara

Kamara has 103 goals and 39 assists in 298 appearances over 11 Major League Soccer seasons

Smartphone pedometers underestimate steps, but valuable health tool: study

UBC researchers found the iPhone underestimated steps by 21.5 per cent

VIDEO: ‘Last Jedi’ premiere kicks off with droids, Daisy Ridley

Latests Star Wars film premiered in style ahead of Dec. 15 theatre debut

Most Read