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: One man suffers serious injuries in crash that closed Fraser Highway in Langley (updated)

One vehicle ends up in ditch after car and SUV collide, air ambulance called in

VIDEO: Drive by shooting in Langley (updated)

Truck and house damaged in attack

Upgrades could be coming to popular Penzer Park in Langley City (with video)

Council considers a staff proposal that would move up construction of planned washroom, benches picnic tables and shelter

VIDEO: celebrating Diwali in Langley

Muriel Arnason library marks event for 14th time

Cloverdale Christmas Hamper struggling to find space for season

A growing year-round kitchen has kicked the holiday food program out of its warehouse space

VIDEO: Sears liquidation sales continue across B.C.

Sales are expected to continue into the New Year

WATCH: 10,000 signatures gained to stop ‘no pets’ rental policy

Pets OK BC said about 1,700 animals were surrendered to the BC SPCA last year due to housing issues

Silver Creek reacts after remains found, man arrested

Neighbours of property where remains were found say man arrested was sweet and polite

VIDEO: Oprah Winfrey and a celebrities attend ‘B.C. Miracle Concert’

Fundraiser featured Foster, Steven Tyler, The Tenors, Matteo Bocelli, Laura Bretan, Carly Rae Jepsen

Human remains found at Silver Creek property

RCMP have been searching the property in the 2200 block of Salmon River Road for the past three days

New B.C. acute care centre opens for young patients, expectant mothers

Facility aims to make B.C. Children’s Hospital visits more comfortable

Search ramps up for B.C. woman after dog, car found near Ashcroft

Jenny Lynn Larocque’s vehicle and dog were found in Venables Valley, but there is no sign of her

Holy Heritage Rail Batman: Superheros come to Cloverdale historic train

The Fraser Valley Heritage Rail is hosting its third annual Halloween rail adventure Oct 28, 29

Police officer hit by car, stabbed in Edmonton attack back on job

Const. Mike Chernyk, 48, returned to work Thursday

Most Read