Malaysia’s state energy giant Petronas may be mulling whether or not to sell its lead stake in the Pacific NorthWest LNG (liquefied natural gas) project, which only just received clearance from the Canadian government, according to Reuters.
Last Tuesday federal authorities in Canada gave the conditional green light to the $8.4bn (in US$) terminal project which would entail moving natural gas from British Columbia’s (B.C.) northeast through a TransCanada pipeline to a terminal on Lelu Island near Prince Rupert on the north coast of B.C. The entire project cost is estimated at $27.4bn.
The conditions attached to the government’s approval amount to 190 legally binding requirements and safeguards to protect the environment, wildlife and aboriginal culture.
Petronas, and its consortium partners, had been waiting three years for that official OK.
But now poor economic factors may see the Malaysian firm sell up and walk away although those economic factors mean potential buyers may not be easy to find. Another option could be to put the whole project on hold pending a recovery in LNG and oil prices.
