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

Petronas gives deadline for LNG deal

Malaysian investors warn of lower gas price, high cost and regulation as B.C. prepares tax on LNG exports

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.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Highway 97 upgrade option for Peachland faces 20-year delay

Peachland council disappointed by highways department decision

Summerland council to examine meeting options

Present livestreaming has been plagued with sound quality issues

Morning Start: Women can give birth after they die

Your morning start for Wednesday, Aug. 12, 2020

COVID-19 outbreak at Oliver farm declared over

There continues to be other community exposure events in the Interior Health region

Summerland begins reopening aquatic centre

First phase of reopening planned for Sept. 8

B.C. records new COVID-19 death, 85 more cases; Horgan calls on celebrity help

This brings the total number of active confirmed cases to 531 across the province

Federal Conservative leadership candidate skirts COVID-19 rules at Kelowna rally

Derek Sloan held a rally in Kelowna that had over 50 people, which is against health orders from the province

Teachers to get 2 extra days to prepare for students’ return, now set for Sept. 10

Students will first start with orientation and learn rules of COVID-19 classroom policies

High-volume littering at Cape Scott draws ire from hiking groups

Popular Vancouver Island hiking spot not closing, but frustration about crowding grows

SFU to drop ‘Clan’ varsity team name

The ‘Clan’ name is shortened from ‘Clansmen,’ and was introduced roughly 55 years ago

New Tory leader must build a strong team in Commons and for the campaign: Scheer

Scheer marked his final day in the House of Commons today as leader of the Opposition

South Okanagan restaurant ranked among world’s best by TripAdvisor

The Hooded Merganser was ranked within the top 10 per cent of all restaurants by TripAdvisor reviews

Kelowna Hells Angels prospect charged with assault, choking

Jason Townsend, 43, was charged after allegedly choking a woman last weekend

Wedding party bear sprayed at North Okanagan campsite

Latest criminal activity at the Meadows leaves locals frustrated

Most Read