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

Suman, mom of Reena Virk, has died

Mother of Reena Virk was an activist against bullying

Local scholarships increase support

Rotary and Sno’uyutth Legacy Scholarships bump up payments by 50 per cent

Meet your community news team during the third annual Oak Bay News community tea

The Oak Bay News hosts the free tea June 21 at Carlton House

B.C. turns up the heat

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

Third elephant seal moults on Gonzales Beach

Victoria City staff were out this morning shifting pylons to protect an… Continue reading

Border officials argue B.C. man’s Facebook posts threat to Canada’s security

A B.C. Supreme Court judge acquitted Othman Hamdan of terrorism charges last September

Search for capsized fishers near Tofino enters fourth day

“There’s a lot of shock in the community in terms of how we could end up at this place.”

B.C. announces $75M to help friends, family care for seniors at home

Funding will go towards respite care and adult day programs

Timely tide attracts another pod of orcas to Victoria

The pod left the harbour about 30 minutes later

Canada won’t ‘play politics’ on U.S. migrant children policy

The U.S. government is under fire over its ”zero tolerance” policy

Capitals coach resigns after Stanley Cup win

Barry Trotz announced his resignation on Monday

Baseball HarbourCats sit at .500 heading into Bend road trip

Port Angeles wins two of three in weekend WCL series in Victoria

Most Read