PRINCE RUPERT, B.C. - Pacific Northwest (PNW) LNG announced July 25 that the $36-billion liquefied natural gas (LNG) project slated for Port Edward, B.C. will not proceed.
According to a statement, PETRONAS and its partners decided the project is not feasible after assessing current market conditions.
"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,” PNW LNG board chair Anuar Taib said in the release. “PETRONAS and its North Montney Joint Venture partners remain committed to developing their significant natural gas assets in Canada and will continue to explore all options as part of its long-term investment strategy moving forward.”
The project began in June 2011 when PETRONAS and Progress Energy Resources Corp, a PETRONAS subsidiary and the operator of the venture, formed the North Montney Joint Venture to develop resources in the North Montney formation, which is located along the foothills of the Rocky Mountains in northeast British Columbia. By 2017, several government agencies had given the project the greenlight and agreements had been reached with numerous First Nation communities, a timeline of the project indicates.
Construction industry stakeholders in B.C. issued statements shortly after the announcement was made, expressing their disappointment.
“We are deeply disappointed that PNW will not go forward, as it means thousands of construction jobs will not materialize,” said Independent Contractors and Businesses Association of B.C. president Chris Gardner.
Tom Sigurdson, executive director of the BC Building Trades Council, shared similar sentiments.
“We have worked closely with a number of the development team at PNW LNG and feel badly for them as they will not see the project they worked and supported for many years come to fruition,” he said.
“We had hoped the project would provide years of work for the construction trades and opportunities for young British Columbian apprentices to earn sufficient hours toward their Red Seal designations but understand that not every project proposed actually ever realizes shovels in the ground.”
PETRONAS is a Malaysian oil and gas company and its partners are Japan Petroleum Export Corporation, PetroleumBRUNEI, IndianOil Corporation and Sinopec-China Huadian.
The Journal of Commerce will have more industry reaction and updates on this story in an upcoming edition of the paper, as well as online.