Petronas Delays Decision on Pacific NorthWest LNG project

gas station under a red skyPetronas has delayed making a final investment decision on plans to export liquefied natural gas from British Columbia, warning that estimated construction costs are too high.

The Petronas-led Pacific NorthWest LNG terminal proposed for Lelu Island has been budgeted to cost $11.4-billion, part of a $36-billion undertaking to ship LNG from the West Coast to energy-thirsty customers in Asia.

But Pacific NorthWest LNG warned Wednesday that pipeline and terminal engineering costs estimated so far make the Canadian LNG project uneconomic, especially against a backdrop where the Malaysian energy giant needs to
scrutinize capital spending because it is being hurt by plunging oil prices.

Photo: “Gas Sation” by Patrick Emerson under the license CC BY-ND 2.0

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