Uncertainty over the future of LNG in British Columbia could lead to Petronas pulling out of its $10 billion Pacific NorthWest LNG project in this province, the CEO of the Malaysian oil and gas giant told Britain’s Financial Times.
Shamsul Abbas cited new taxes and competition from American gas projects as potential roadblocks.
“The way things are developing the project remains uncertain and I doubt we will be able to make a positive [final investment decision] by year-end,” he said.
This is not the first time Abbas has addressed the uncertainty over the industry in the province. He has previously warned against unrealistic expectations, saying the province needed to be careful not to squander opportunities for LNG development because of government regulations, likely referring to B.C.’s LNG tax.
Petronas and the provincial government signed a letter of intent in May that addressed collaborative work in producing LNG in B.C. and exporting it to Asian markets. This had outlined a framework for coming toward a final investment decision. At that time, both parties had agreed that all terms for the project would be negotiated by November 30.
It has been estimated that the Pacific NorthWest LNG project would create about 330 permanent jobs and up to 4,500 construction jobs while it is being built.
- With files from Nelson Bennett and Tyler Orton
