The company has reportedly advised the government that it will not accept additional hurdles. Petronas has suffered multiple delays and setbacks including aboriginal and environmental movement opposition and has already spent USD12 billion so far on the project up to this stage.
Michael Culbert, the president of Pacific NorthWest LNG said in an emailed statement that he was currently in Kuala Lumpur where Petronas is headquartered and that he was unable to provide comment.
In an emailed statement obtained by the Financial Post, Culbert urged supporters to get family and friends to send letters to the Canadian Environmental Assessment Agency (CEAA) by March 11, when public comment period ends. “Our opponents have been sending their thoughts to CEAA. Have you told Ottawa why you support the LNG business in Canada?”
Another two dozen companies eyeing LNG exports have not gone ahead with their projects due to regulatory delays. There are additional concerns on rising competition from US LNG exporters, plummeting prices, and aboriginal and environmental group opposition. These companies include the AltaGas-led group working on the Douglas Channel LNG project and Royal Dutch Shell on a proposed terminal near Kitimat.
The big worry, according to FP, is that the government will continue to stall while Petronas burns even more cash on the project. Market conditions for LNG are already heading south, where proponents want to cut their losses and look at other opportunities. Petronas is in a joint venture in British Columbia with China’s Sinopec, Japan Petroleum Exploration Co, India Oil Corp and Petroleum Brunei.
The new federal Liberal government is toughening up environmental reviews of major energy projects, in line with its “international commitments to help reduce greenhouse gases”, and also “to regain the public trust.”
The project sits on federal land on Lelu Island near Prince Rupert. It received “a largely favourable assessment” from the CEAA last month. It also received the green light from the British Columbia Government in November 2014.
In January, the government announced additional assessment on “direct and upstream greenhouse gas emissions”. The CEAA, according to a spokeswoman, will look into the latest government position on greenhouse gases.
CEAA said in its draft report on the project that it may cause significant adverse effects on the harbour porpoise but concludes that with key mitigation measures, it is not likely to cause significant adverse environmental effects. The CEAA is now conducting consultations and will make a recommendation to federal environment and climate change minister Catherine McKenna.
A Petronas spokesman said that it was business as usual for the company and referred to a statement on February 29 by the company’s President and Group CEO Wan Zulkiflee Wan Ariffin stating: “As far as the Pacific Northwest LNG project in Canada is concerned, we continue to work towards achieving full FID. We are reviewing the draft report (of the CEAA) including the conditions.”