Petronas Delays Canadian LNG Project

December 3, 2014

Petronas, Malaysia's state-owned oil and gas company, delayed giving the final investment go-ahead on Wednesday for its $11 billion liquefied natural gas export terminal in British Columbia, citing high costs and other outstanding issues.

"Costs associated with the pipeline and LNG facility remain challenging and must be reduced further before a positive FID (final investment decision) can be undertaken," the company said in a statement.

Petronas, which had hoped to give the project the green light before yearend, said it will continue to invest in natural gas in British Columbia and will keep working to secure necessary federal approvals and permits for the project.

(Reporting by Julie Gordon; Editing by Peter Galloway, Reuters)

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