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

In Photos: CP Rail Holiday Train lights up Sicamous

The stop on the train’s Canada-wide journey came with a $5,500 donation to local food bank.

Update: Collision cleared on Highway 97B south of Salmon Arm

The crash took place at the highway’s intersection with Deep Creek Road.

Chances Gaming Centre evacuated due to ‘security issue’

Patrons were evacuated at approximately 8:45 p.m.

Salmon Arm pharmacies continue to experience flu vaccine shortage

One pharmacy has privately sourced vaccine in stock, available for purchase

VIDEO: Success of wildlife corridors in Banff National Park has advocates wanting more

Demand for more highway protection escalated after seven elk were killed by a semi-trailer near Canmore

Column: Kid’s growing up fast on Old Town Road

In Plain View by Lachlan Labere

RCMP officer volunteers as designated driver

Princeton’s two largest employers ensure safe rides for Christmas parties

Pacioretty scores 2, Golden Knights top Canucks 6-3

Vegas goalie Fleury gets win No. 452

B.C. VIEWS: Hunger does not end with the season

Despite innovations in food distribution, the need is still there in B.C. communities

Kelowna RCMP officer suspended after allegedly sexting assault victim

RCMP confirm investigation but hold back details

Legendary primatologist coming to Okanagan

Dame Jane Goodall, founder of the Jane Goodall Institute, will present in Vernon Tuesday, March 24

Old Christmas card has ties to Summerland agriculture

Card was sent by former director of Summerland Research Station

Fans sing Canadian anthem after sound system breaks at BMW IBSF World Cup

The Canadians in attendance made sure their team and flag were honoured on the podium

Most Read