Petronas cancels huge British Columbia liquefaction project

Pacific NorthWest LNG, a subsidiary of Mlaysian energy giant Petronas, has cancelled its planed $36bn liquefaction plant in Port Edward, British Columbia, citing changing market conditions.

Analysts said the persistently low price of gas over the past two years was the main reason for the binning of the huge project. A growing environmental campaign against the plant’s construction also likely came into Petronas’s thinking to end the project.

“We are disappointed that the extremely challenging environment brought about by the prolonged depressed prices and shifts in the energy industry have led us to this decision,” said Anuar Taib, chairman of the PNW LNG board. “Petronas and its North Montney Joint Venture partners remain committed to developing their significant natural gas assets in Canada,” he said.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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