Natural Gas Development Minister Rich Coleman (left) and Premier Christy Clark tour Petronas gas import facilities in Malaysia in May.

Petronas gives B.C. deadline for LNG deal

Malaysia’s state-owned energy company has issued another public warning to the B.C. government

Malaysia’s state-owned energy company has issued another public warning to the B.C. government that it could push back its investment in liquefied natural gas by 10 or 15 years.

Petronas CEO Shamsul Azhar Abbas issued a statement Monday describing a softening global market for natural gas and oil, and renewing criticisms made public in September about Canada’s tax and environment rules.

The latest shot across the bow from the leader of B.C.’s largest LNG project comes as the B.C. legislature meets for a rare fall session. The government’s main business in the two-month sitting is to authorize a provincial tax on LNG exports in addition to the royalties paid to the province for gas from northeastern B.C.

“The proposed fiscal package and regulatory pace in Canada threatens the global competitiveness of the Pacific Northwest LNG project,” Abbas said.

“This is further exacerbated by preliminary project costs, which indicates cost of local contractors to be higher and not benchmarked to global contractor’s cost.”

Premier Christy Clark and Natural Gas Development Minister Rich Coleman met with Petronas last week and agreed to have the tax arrangements completed by the end of October, allowing an investment decision by the end of the year.

The consortium led by Petronas also has to pass provincial environment assessment, including air pollution limits on its gas-fired LNG compressors.

The project has marine impacts from its proposed terminal on Lelu Island near Prince Rupert, which requires approval of Fisheries and Oceans Canada for its effect on salmon and ocean habitat.

Petronas is leading a consortium that includes Chinese, Japanese, Indian and Brunei investors for a pipeline and LNG processing in northern B.C. Petronas paid $5 billion last year to take over Progress Energy Canada, which has major shale gas holdings in northeast B.C. and Alberta.

 

 

 

 

 

Just Posted

RDOS to study sites for composting facility

Penticton and Okanagan Falls landfills will be examined

Summerland grocery store offers warm atmosphere, community service

Nesters Market has been involved in numerous initiatives within Summerland

Codling moths remain a problem for Okanagan apple growers

Problem areas for pest include Summerland, Penticton and Naramata

Regional District of Okanagan Similkameen works to control mosquito populations

Control efforts in the region have been starting earlier each year

Summerland Ladies Club competes for Rental Cup

One-day golf tournament sponsored by Summerland Rental Centre

VIDEO: Grizzly bears fight along northern B.C. highway in rare footage

Cari McGillivray posted the head-turning video, shot near Stewart, B.C., to social media

Caught on Camera: Boat catches fire at Okanagan marina

The cause of the fire is unknown at this time, no injuries were reported as a result of the blaze

Handgun crackdown, health spending and transit plans latest campaign promises

Friday was the end of a busy week on the campaign trail

B.C. woman photographs massive ant swarm on Abbotsford driveway

She asked what the ants were doing? The answer: war

Police arrest B.C. phone scammer linked to illegal call centres in India

Person arrested in Burnaby here on a work visa, says police

Air Canada forced girl, 12, to remove hijab: civil rights group

The San Francisco Bay Area office of the Council on American-Islamic Relations calling for change

Man from Winnipeg who was hiking alone found dead in Banff National Park

RCMP say the man was hiking alone on Mount Temple Thursday

Okanagan hosts Mexico for soccer

The Okanagan Masters League won both matches against their Mexican counterparts

Epic overtime battle, big turnout for memorial night to late owner of Okanagan hockey team

The KIJHL’s Kelowna Chiefs hounoured Grant Sheridan with a win in the team’s home-opener

Most Read