Wan Zulk­i­flee: We are de­ter­mined to mon­e­tise Cana­dian LNG project

New Straits Times - - Business -

KUALA LUMPUR: Petroliam Na­sional Bhd (Petronas) is de­ter­mined to mon­e­tise the US$27 bil­lion (RM120 bil­lion) Cana­dian liq­ue­fied nat­u­ral gas (LNG) ex­port ter­mi­nal project, said pres­i­dent and chief ex­ec­u­tive of­fi­cer (CEO) Datuk Wan Zulk­i­flee Wan Arif­fin.

“We have about 24 tril­lion cu­bic feet of proven gas re­serves there. So we are de­ter­mined to mon­e­tise these re­serves in one way or the other. For Petronas, aside from Malaysia, Canada has the sec­ond largest gas re­serve.

“As this is a big de­ci­sion in terms of in­vest­ment, we are look­ing at how to make the LNG plant the most com­pet­i­tive among other North Amer­i­can LNG plants.

“If we need to take our time, we will take our time be­cause we want to be sure that this is the right de­ci­sion,” he said at a brief­ing on Petronas’s 2016 fi­nan­cial re­sults, here, yes­ter­day.

Ex­ec­u­tive vice-pres­i­dent and CEO (up­stream) Datuk Mohd Anuar Taib said the com­pany was as­sess­ing the Pa­cific North-West LNG project and the mar­ket con­di­tions.

“It is a com­plex process and we are fig­ur­ing out how do to make it com­pet­i­tive by look­ing at the cost struc­ture and other op­tions avail­able.

“Once we have looked at the con­di­tions of the mar­ket and made our eval­u­a­tion, we will make our de­ci­sion,” he said.

Last Septem­ber, the Cana­dian gov­ern­ment is­sued a con­di­tional ap­proval to the project that came with 190 con­di­tions.

These in­cluded a cap on car­bon gas emis­sions and the hir­ing of an in­de­pen­dent en­vi­ron­men­tal mon­i­tor­ing group in con­sul­ta­tion with in­dige­nous tribes and lo­cal gov­ern­ment.

Petronas is the ma­jor­ity owner of the LNG project, along with China Petro­chem­i­cal Corp, Ja­pan Petroleum Ex­plo­ration Co, In­dia Oil Corp and Brunei Na­tional Petroleum Co. Zarina Zakariah

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