Bri­tish Columbia LNG megapro­ject halted

The Guardian (Charlottetown) - - CANADA -

VAN­COU­VER — Pa­cific North­West LNG says it will not be pro­ceed­ing with the $36-bil­lion liq­ue­fied nat­u­ral gas megapro­ject it had planned to build in Bri­tish Columbia. The con­sor­tium says the an­nounce­ment by Petronas and its part­ners comes af­ter a care­ful re­view of changes in mar­ket con­di­tions. Anuar Taib, ex­ec­u­tive vi­cepres­i­dent and CEO (up­stream) for Petronas, says pro­longed de­pressed prices and shifts in the en­ergy in­dus­try made the de­ci­sion nec­es­sary.

LNG prices have been hit by a global over­sup­ply as nu­mer­ous projects have come on­line, chal­leng­ing the eco­nomics of the de­vel­op­ment and oth­ers that were pro­posed in the prov­ince.

The con­sor­tium has al­ready sunk bil­lions into de­vel­op­ing the nat­u­ral gas fields in the B.C. in­te­rior, but the project would have re­quired much more in­vest­ment in­clud­ing an $11.4-bil­lion LNG ter­mi­nal in Port Ed­ward, B.C.

The project, which se­cured Prime Min­is­ter Justin Trudeau’s ap­proval last year, was pro­posed as a way to re­duce coal use in Asia, but it has also faced crit­i­cism for the po­ten­tial green­house gas emis­sions that would have re­sulted.

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