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.

 

Just Posted

Local artist Danika Naccarella commissioned to design artwork for Northern Sea Wolf

The Sea Wolf symbolizes family, loyalty and the protection of those travelling their waters.

B.C. turns up the heat

Environment Canada has issued a special weather statement for most the province due to high temperatures

‘Daddy bonus’ common in B.C. workplaces, study finds

UBC researchers say dads don’t have to be number one in the office to get a raise

Conservation officers relocate two grizzlies away from Bella Coola

Officers worried the bears would become reliant on human food sources

Explosives, firearms recovered from weekend standoff in Hagensborg

A high stakes standoff ended peacefully last Friday when single male was arrested without incident

Homeless people living on ‘Surrey Strip’ move into modular housing

BC Housing says 160 homeless people are being moved into temporary Whalley suites from June 19 to 21

Port of Prince Rupert names Shaun Stevenson as new CEO

Stevenson has worked for the port for 21 years as vice president of trade development

Senate officially passes Canada’s marijuana legalization bill

Bill C-45 now moves to royal assent, which is the final step in the legislative process

Fake attempted abduction not funny to B.C. neighbourhood residents

Two teenage boys won’t face criminal charges after scaring girl

Mosquitoes out in full force already? Blame the weather

But a B.C. mosquito expert says the heat wave will help keep the pests at bay

Man pleads not guilty in 1987 slayings of B.C. couple

William Talbott of SeaTac was arraigned Tuesday in Snohomish County Superior Court

New GOP plan: Hold kids longer at border – but with parents

Move would ease rules that limit how much time minors can be held with their parents

Without a big data strategy, Canadians at risk of being ‘data cows’

Presentation said artificial intelligence could give Facebook and Amazon even more power

Five B.C. families stuck in Japan as Canada refuses visas for adopted babies

Lawyer points to change in American policy around adoptions from Japan

Most Read