Petronas Could Delay its Canadian LNG Project

Petronas is considering pushing back its Canadian LNG project, Pacific Northwest LNG project, due to adverse market conditions, according to The Wall Street Journal.

People familiar with the matter told The Wall Street Journal that the LNG glut and weak oil prices have rendered the project unattractive at the moment. They declined to say how long the delay might be.

The project has already been running way behind schedule. In March, it got further delayed when Canadian Environmental Assessment Agency (CEAA) was granted a three-month extension to complete the study the project. Petronas and its partners have been waiting nearly three years for a permit to build the $28 billion LNG facility in northern British Columbia. 

In April, Petronas said it will make a final investment decision depending on the timing of the CEAA decision.

Pacific NorthWest LNG Ltd. is proposing to construct and operate a LNG facility and marine terminal near Prince Rupert, within the District of Port Edward. The Pacific NorthWest LNG facility would be located on Lelu Island. The proposed project would convert natural gas to LNG for export to Pacific Rim markets in Asia.