Malaysia’s Petronas will make its final investment decision (FID) on a northwest B.C. liquefied natural gas project in June, according to Reuters.
Speaking at a press event February 27 in Kuala Lumpur, Petronas CEO Shamsul Azhar Abbas said the energy giant wanted to farm-out about 50% of its Pacific NorthWest LNG project to other companies.
“So far we have achieved 38%," he said, according to Reuters.
Abbas added state-owned Petronas is in talks with a Chinese buyer for another 10-12% of the project.
Last month, Prime Minister Stephen Harper announced in Surrey that Ottawa would offer tax breaks as high as 30% for equipment and 10% for facilities used in the LNG sector. The tax breaks took effect February 19 and extend to 2025.
The sharp decline in oil prices since last year has made LNG less lucrative for companies to invest.
In December, Abbas announced Petronas was deferring its FID on the $36-billion project in Price Rupert.
The company would only say a decision would be made “pending further clarity on substantive items of importance to ensure that critical project components align with economic viability of the project and competition from other LNG producing countries.”
