Natural Gas Development Minister Rich Coleman (left) and Premier Christy Clark tour Petronas gas import facilities in Malaysia in May.

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.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

RCMP crest. (Black Press Media files)
Highway 97 two-vehicle crash near 150 Mile House claims one life

The collision closed the highway at 150 Mile House

Cariboo-Prince George MP Todd Doherty chairs an opioid crisis working group pushing for policies to stop the flow of illicit drugs in Canada. (Victoria Police Department photo)
‘The opioid crisis impacts all of us’: Cariboo Prince Geroge MP Todd Doherty

Todd Doherty is co-chair of Conservative Party caucus opioid crisis working group

As a former reporter and editor at the Tribune, Diana French carries on sharing her ideas through her weekly column. (Photo submitted)
FRENCH CONNECTION: Skating rink welcomed

This lake one will not last long but is still worth it

Jim Hilton pens a column on forestry each week for the Quesnel Observer.
FOREST INK: New batteries close to industrial level applications

The good news is the hope that this cost should come down each year

A health worker holds a vial of AstraZeneca vaccine to be administered to members of the police at a COVID-19 vaccination center in Mainz, Germany, Thursday, Feb. 25, 2021. The federal state of Rhineland-Palatinate, start with the vaccination of police officers in internal police vaccination centers. (Andreas Arnold/dpa via AP)
B.C. officials to unveil new details of COVID vaccination plan Monday

Seniors and health-care workers who haven’t gotten their shot are next on the list

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

The humanoid sensing robot has a 3D printed finger cap that measures oxygen levels. (Dr. Woo Soo Kim)
Medical care robots being made with 3D origami in B.C. lab

Would you let a robot take your temperature?

B.C. Premier Gordon Campbell gets acquainted with Tsawwassen First Nation Chief Kim Baird’s 10-month-old daughter Sophia, husband Steve and four-year-old Amy at the B.C. legislature before a ceremony to endorse the Tsawwassen Treaty, Oct. 15, 2007. (Sharon Tiffin/Black Press)
Indigenous consent must come first and last for B.C. industrial projects

UN declaration seen as end to a history of horror stories

FILE  - In this Friday, Jan 1, 2021 file photo, a lorry driver's documents are scanned on a phone as he passes a checkpoint for the train through the Eurotunnel link with Europe in Folkestone, England. One month after Britain made a New Year split from the European Union's economic embrace, businesses that once traded freely are getting used to frustrating checks, delays and red tape. Meat exporters say shipments have rotted in trucks awaiting European health checks. Scottish fishermen have protested at Parliament over the catch they can no longer sell to the continent because of byzantine new paperwork. (AP Photo/Frank Augstein, File)
FINLAYSON: Government should focus on strengthening B.C.’s leading export industries

To revive the economy, this piece in the strategy is integral, writes Jock Finlayson

A cross-country skier glides along the banks of the Ottawa River in Ottawa on Thursday, Feb. 25, 2021. Canadians across the country can look forward to a mild spring peppered with the odd winter flashback throughout the first part of the season, according to predictions from one prominent national forecaster. THE CANADIAN PRESS/Sean Kilpatrick
Mild spring with some wintry blasts predicted for most of Canada: Weather Network

Weather Network is forecasting a slower than average start to spring in British Columbia

AstraZeneca’s vaccines are ready for use at the vaccination center in Apolda, Germany, Sunday, Feb.28, 2021. (Michael Reichel/dpa via AP)
Feds hoping for AstraZeneca shots this week as Pfizer-BioNTech prepare next delivery

The first of those doses could start to arrive in Canada as early as Wednesday

Most Read