PETRONAS pulls plug on $11.4 billion Pacific Northwest LNG project

Despite previous Federal Government approval of the PNW LNG project, Petronas announced in a press release that they have pulled the plug on the $11.4 Billion project.

Here is their press release.....

"PETRONAS and its partners have decided not to proceed with the Pacific NorthWest LNG project at Port Edward in British Columbia, Canada.

The decision was made after a careful and total review of the project amid changes in market conditions.

PETRONAS’ Executive Vice President & Chief Executive Officer Upstream, Anuar Taib said, “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.”

“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,” added Anuar.

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 PETRONAS’ growth strategy in North America.

PETRONAS and the project’s partners are thankful for the support received from everyone involved, especially the area First Nations, the District of Port Edward, the City of Prince Rupert and their communities for their invaluable involvement and efforts in the project."

Here are some other comments on the project cancellation....

Newly appointed BC Energy and Mines minister Michelle Mungall, stated shortly after the announcement, in a CBC interview, “PNW LNG decision to cancel $11.4 Billion project has nothing to do with the new Government.”

Petronas’ decision to scrap its plan to build the Pacific Northwest LNG terminal (PNW) is a tough blow for the B.C. construction industry, the president of the Independent Contractors and Businesses Association (ICBA) said.

“We are deeply disappointed that PNW will not go forward, as it means thousands of construction jobs will not materialize,” said ICBA president Chris Gardner, in a statement.

PNW would have created 4,500 construction jobs, 330 long-term operations positions, and up to $1.3 billion per year in government revenue.

“No jurisdiction does energy extraction in a better, cleaner, more socially responsible way than Canada,” said Gardner. “This is a significant lost opportunity that would have brought many benefits. Canada has to act faster to seize the opportunities that our responsible resource development industries can deliver.”