business

Petronas-led Canada LNG project head denies report it will walk away

March 09, 2016

Petronas has been waiting for more than two years for the Canadian government to approve its proposed liquefied natural gas export terminal on its west coast. – Reuters pic, March 9, 2016.The president of a Petronas-led proposed liquefied natural gas export terminal on Canada's West Coast on Tuesday denied a newspaper report that it would walk away from the project if the federal government did not approve it by the end of March.

The company remains committed to the environmental process, including the new measures on upstream greenhouse gas emissions, Pacific NorthWest LNG president Mike Culbert said in an emailed statement.

Late on Monday, Canada's National Post newspaper reported that Petronas, also known as Petroliam Nasional Bhd, was threatening to walk away from the project over the review, which has dragged on from more than two years.

The company has been frustrated by new climate change measures the federal government introduced in January, including measuring the impact of upstream production on greenhouse gas emissions, the newspaper reported, citing an unnamed source.

Canada federal Environment Minister Catherine McKenna is expected to release her final decision on the project later this month, assuming there are no further delays.

A draft environmental assessment released last month found that the project would not cause major ecological damage to the region, but would likely harm harbor porpoise populations and have an impact on climate change.

Petronas, the largest stakeholder in Pacific NorthWest LNG, is in the process of slashing some 1,000 jobs and cutting its spending by roughly US$12 billion (RM49 billion) over the next four years, as it struggles to deal with the impact of plunging oil prices. – Reuters, March 9, 2016.