British Columbia Signs LNG Deal with Petronas
B.C. Premier Christy Clark has announced an agreement in principle with Pacific NorthWest LNG, owned in majority by Malaysia's Petronas, for a liquefied natural gas development on the province's northwest coast.
Hailed as “the largest capital investment in B.C. history,” Clark said the LNG framework will result in stable, long-term revenue for B.C. and $36 billion in investment, including a proposal for an LNG facility near Prince Rupert.
Both are intended to provide certainty to the Petronas-led Pacific Northwest LNG project and encourage them to make a final investment decision to build a project in British Columbia.
Although there are 19 proposed LNG projects in B.C., none have made a final investment decision as other competitors, including in the United States, push forward quickly and world natural gas market have slumped.
“We have worked hard to establish a path to final investment decision with the agreements we are going to sign today,” Premier Christy Clark said.
The prospect of a liquefied natural gas industry in B.C. would be a game-changer for aboriginal communities, Premier Christy Clark said.
Through balanced budgets, controlled spending and – mostly – LNG revenues, the province could eliminate an estimated $62.7 billion in debt, create 100,000 jobs and bring an end to the Provincial Sales Tax, Clark vowed.
The Pacific NorthWest LNG export terminal and pipeline project would mean a $36-billion investment – the biggest single investment in the province’s history. It is just one of 19 LNG proposals on the books, but probably the most advanced.
