A $36-billion project plan to build a 900-km pipeline and west coast port to transport liquefied natural gas to Asia has been shelved. The Pacific NorthWest LNG consortium announced the decision was made by the Malaysian oil and gas company Petronas and its partners after a careful review “amid changing market conditions.”
Depressed prices, shifts in industry cited
In a news release, Anuar Taib, Chairman of the PNW LNG Board, 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.
New projects around the world have created a global oversupply of liquefied natural gas and a drop in prices.
Billions already spent
The consortium has spent billions on natural gas projects in the western province of British Columbia but had not begun work on a terminal on the Pacific coast. That would have cost more than $11-billion.
The project was approved by Prime Minister Justin Trudeau and the previous Liberal government of British Columbia. However, that provincial government was defeated in a recent election and replaced by a party opposed to the project. Environmentalists were opposed and some Indigenous First Nations went to court to stop it.
While announcing the shelving of this particular project, the news release goes on to say: “PETRONAS and its North Montney Joint Venture partners remain committed to developing their significant natural gas assets in Canada and will continue to explore all options as part of its long-term investment strategy moving forward.”
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