Malaysia’s Petroliam Nasional Bhd (Petronas) has decided not to proceed with the US$29 billion liquefied natural gas (LNG) terminal project at Port Edward in British Columbia, Canada due to the prolonged depressed global oil prices.
Petronas’s Executive Vice President and CEO Upstream Mohd Anuar Taib said the decision was made by Petronas and its partners after a careful and total review of the project amid changes in market conditions.
“We are disappointed that the extremely challenging environment brought about by the prolonged depressed prices and shifts in the energy industry have led us to this decision,” Anuar said.
“We along with our North Montney Joint Venture partners, remain committed to developing our significant natural gas assets in Canada and will continue to explore all options as part of our long-term investment strategy moving forward,” he said.
Anuar said Petronas’ commitment in Canada continues through Progress Energy Canada Ltd and its world-class inventory of natural gas resources where the subsidiary plays a key role in supporting its growth strategy in North America.
He said Petronas and the project’s partners are thankful for the support received from everyone involved, especially the First Nations, the District of Port Edward, the City of Prince Rupert and their communities for their invaluable involvement and efforts in the project.
Meanwhile, Pacific NorthWest LNG president and CEO Adnan Zainal Abidin said: “Without everyone’s support and involvement, we would not have achieved the many key milestones for the project, including agreements with the First Nations, the BC environment assessment certificate and the Canadian environmental assessment approval.”