No guarantees on Petronas project LNG
OTTAWA Prime Minister Justin Trudeau’s government will decide on final approval of the Pacific NorthWest gas project without any guarantee that Petronas will proceed, the federal resources minister says.
The $11-billion liquefied natural gas plant in Prince Rupert remains under political review while similar proposals are being scaled back or delayed amid low prices. Trudeau’s government has committed to a decision by Oct. 2 and is balancing a stated desire to grow the economy with toughening environmental regulations and lowering carbon emissions.
“I don’t think we’re in a position to get guarantees from the company,” Natural Resources Minister Jim Carr said in a recent interview. “We know other LNG projects in B.C. that are not proceeding. Those decisions will be made by boards and by executives.”
The company’s decision will also hinge on any conditions — and costs attached to them — the government places on its approval, Carr said.
Pacific NorthWest project is one of several major energy projects Trudeau is considering in B.C. His government must also decide whether to appeal a ruling impeding Enbridge Inc.’s Northern Gateway pipeline this month, and whether to OK Kinder Morgan Inc.’s Trans Mountain expansion by December.
Trudeau, elected last year in part on an environmental platform, plans to approve at least one pipeline in his first term and is said to favour the Trans Mountain project. Carr and Environment Minister Catherine McKenna are overhauling regulatory review rules to boost confidence in the system.
“Proponents have every reason to believe there’s clarity and the process is clear,” Carr said recently. “Will, at the end of the day, everybody be happy? I doubt it. But I want most Canadians to believe this is a better process.”
LNG remains a priority for B.C.’s Liberal government, which is heading into an election next spring. Premier Christy Clark favours the project but has stopped short of publicly pressuring Trudeau for approval.
Petronas, Malaysia’s state-owned energy company, faces falling profits amid a commodities slump and says it will review the project, its cost and market conditions after Ottawa makes its call. “The decision to proceed to the construction phase of the project rests with Pacific NorthWest LNG’s shareholders,” spokesman Spencer Sproule said Thursday.
Opponents of the project, including those from indigenous communities near the proposed site in northern B.C., have called on Trudeau to reject Clark’s calls for approval. Trudeau has declined to say whether he supports LNG development.