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

Kootenay Robusters end 18th paddling season

Women of Trail, Castlegar, Rossland, Christina Lake and Grand Forks came together in 2001

Trail bus line readies to takeover Kelowna run

Silver City Stage Lines must have a booking site up by Sept. 30; two vehicles activated by Oct. 26

More burning prohibitions rescinded in southeast B.C.

Category 2 and 3 fires will be permitted in Southeast Fire Centre as of 1p.m. on Wednesday.

Cops For Kids’ southeast B.C. tour rolls on

Annual RCMP fundraiser will see 34 cyclists ride 1,000 kilometres raising funds

Municipal spending outpaces population growth 4-fold in B.C.: report

Canadian Federation of Independent Business has released its annual operational spending report

Watch out for Pavement Patty: Drivers warned outside B.C. elementary school

New survey reveals unsafe school zones during 2018 back-to-school week

First Nations block roads to stop the moose hunt in B.C.’s Interior

Chief Joe Alphonse confirmed Thursday they’ve deactivated the Raven Lake Road and the Mackin Creek Road just before the Island Lake turnoff

‘Like an Alfred Hitchcock movie’: Birds fall dead from the sky in B.C. city

Raptor expert says he’s never seen it happen anywhere in the Lower Mainland

Canada signs global pact to help rid world’s oceans of abandoned fishing gear

The federal Fisheries Minister says it’s a ‘critical issue’

GOP pushing forward for Kavanaugh, accuser wants ‘fairness’

Kavanaugh has denied al allegations of sexual misconduct

Tent city campers now allowed to stay in B.C. provincial park

Contrary to earlier reports, Ministry of Environment says there is no deadline for campers to leave Greater Victoria camp site

Former VP of Lululemon joins B.C. cannabis cultivation facility

Kerry Biggs will be the chief financial officer of True Leaf, in Lumby

Could cannabis help keep people in B.C. on treatment for opioid addiction?

People on opioid agonist treatment face lower risks of overdosing, BC Centre on Substance Use says

Around the BCHL – Trail Smoke Eater grad to captain NCAA Michigan Tech Huskies

Around the BCHL is a regular look at the BCHL and goings-on throughout the junior A world.

Most Read