Canada approves US$8 billion LNG plant, but Petronas to review project
RICHMOND, BRITISH COLUMBIA/KUALA LUMPUR: Malaysia’s Petronas said on Wednesday that it would review a proposed C$11 billion (US$8.3 billion) liquefied natural gas plant in western Canada that was approved by Ottawa following a three-year wait. years,” said Wood Mackenzie analyst Alex Munton.
“That’s what we think will cause Petronas to pause investment for a period of time until it’s more confident about future gas prices.”
Petronas in early 2016 announced it would cut spending by up to RM50 billion (US$12.09 billion) over four years in response to the oil price slump.
“We always look at the business and if there are options for optimising of course we will look at that,” Wan Zulkiflee said on Wednesday when asked about more spending cuts this year.
Canada imposed 190 legally binding conditions to limit the environmental impact of the Pacific NorthWest LNG project in northern British Columbia, including a hard cap on carbon emissions.
But green groups condemned the move, which followed an environmental assessment saying the plant would have significant adverse effects requiring major remedial work. They argued the facility would cause a massive increase in greenhouse gas emissions at a time when Canada looks set to badly miss its existing climate change targets.
“If this project is built as currently approved, it will be one of the single biggest sources of carbon pollution in the country,” said Merran Smith, executive director of Clean Energy Canada.
Environment Minister Catherine McKenna, who made the announcement on the banks of the Fraser River, flanked by Natural Resources Minister Jim Carr and Fisheries Minister Dominic LeBlanc, said she was confident the project would proceed in the most sustainable manner possible. — Reuters