The federal Liberal government is “dithering” on its review of Pacific NorthWest LNG as the project hangs in regulatory limbo, according to Prince George-Peace River MP Bob Zimmer.
Federal Environment Minister Catherine McKenna pressed the pause button on the controversial project in late March, saying the Canadian Environmental Assessment Agency (CEAA) needed additional time to review the effects of the $11.4 billion liquefied natural gas terminal slated for Lelu Island near Prince Rupert.
"It's one thing to delay. Now it just seems like dithering," Zimmer said. "They don't accept what's given to them even though it's already passed an environmental process provincially and even federally with (the previous government). They seem to be dithering about it and pushing it further down the calendar."
The facility would process gas from Progress Energy holdings in Northeast B.C. Its approval is increasingly considered a linchpin for the Peace Region economy, because it would provide a world price for gas at a time when North American markets are flooded. Earlier this year, Progress Energy slashed its drilling and exploration budgets in Northeast B.C. as it await a decision on the export facility.
McKenna earlier indicated a possible federal cabinet decision on the project by the end of June. However, Zimmer said the 90-day approval period set out in March has yet to begin.
Petronas, the Malaysian gas giant behind the project, is being asked to provide additional information about the project's greenhouse gas emissions and impact on Skeena River fish populations. Zimmer said a key question is the impact of the facility's lights on juvenile salmon habitat in Flora Bank.
He said the proponent plans to submit the last of its technical work "within the next few weeks." At that point, the 90-day review period will begin, but only if the CEAA "accepts" the new information.
"There's more information that (the CEAA) are asking for that's needs to be accepted," Zimmer said. "That 90-day clock hasn't even started yet, to our dismay."
Some analysts say its possible none of the roughly 20 proposed LNG plants on B.C.'s coast will move forward amid a global supply glut. Pacific NorthWest faces additional opposition from environmental groups for its greenhouse gas emissions and impact on salmon habitat.
The B.C. government claims LNG will go to offset coal in Asian markets, making it a net-positive for the climate.
Zimmer said the possibility of Petronas walking on the project due to regulatory delays is a concern.
"They're not leaving easily," Zimmer said. "They've got a whole bunch invested already and they see the potential here and are sticking with that. But believe me, I'm as concerned as everyone in Northeast B.C. that the longer this goes on, the more the proponent looks and says 'are we still in this game?' That's my biggest concern."
The company will make a decision whether to invest in the project after the results of the CEAA process.
