Petronas issues conditional approval for LNG project in B.C.

(Globe and Mail; Canada; June 12) -An international consortium June 11 committed to building a liquefied natural gas terminal near Prince Rupert, B.C., as long as the project receives federal environmental approval and a provincial tax deal. Pacific NorthWest LNG, led by Malaysia’s state-owned Petronas, said conditional approval is a crucial milestone. After waffling last year and even threatening to cancel the project, the group is striving to start construction by the end of 2015 and launch exports to Asia in 2019.

Petronas and its Asian partners stipulated that two conditions must be met. “The final investment decision will be confirmed by the partners of Pacific NorthWest LNG once two outstanding foundational conditions have been resolved,” the consortium said. “The first condition is approval of the project development agreement by the Legislative Assembly of British Columbia, and the second is a positive regulatory decision on Pacific NorthWest LNG’s environmental assessment by the government of Canada.”

The Canadian Environmental Assessment Agency began its review of Pacific NorthWest LNG in April 2013, with the latest delay focused on the project’s potential impact on nearby salmon habitat. The developers also must deal with opposition from the Lax Kw’alaams Band, which is particularly concerned with salmon habitat issues.And the project needs B.C. lawmakers to endorse a long-termdeal providing certainty on royalties and taxes that the government signed with the developer last month.