Canada: PNW LNG gets government’s nod, Petronas still to decide

Petronas-led multi-billion dollar Pacific NorthWest LNG project in Canada has been granted the long-awaited approval by the Canadian government on Tuesday.

Following the federal environmental assessment, the minister of the environment and climate change, Catherine McKenna, the minister of natural resources, and the minister of fisheries, oceans and the Canadian Coast Guard, Dominic LeBlanc, informed the Federal Cabinet decided to approve the project.

According to a statement by the government’s office, the project is one of Canada’s largest resource development projects with a total capital investment of up to C$36 billion (US$27.25 billion) when accounting for upstream natural gas development.

Additionally, it is subject to over 190 legally binding conditions, determined through scientific study, that will lessen the environmental impacts of the project.

The project will be subject to a rigorous compliance and enforcement regime, which includes establishing environmental monitoring committees comprised of Indigenous peoples, and federal and provincial representatives, for the first time ever. Technical experts will monitor the project and will have the authority to stop project activities that do not comply with the conditions, the statement reads.

The decision has been based on science, traditional knowledge of indigenous peoples and other relevant evidence, seeking views of the public and affected communities and consulting indigenous people accommodating their impacted rights and interests in the process.

The government notes that the decision also imposes a maximum cap on annual project greenhouse gas emissions of 4.3 Mt of CO2e per year, 900,000 tonnes less than what had initially been proposed by the proponent.

However, Petronas noted earlier this year that it intends to review the LNG market outlook and overall project commerciality before it develops the proposal for the final investment decision. The company intends to review the impacts on the overall cost structure and schedule of the project.

The proposed facility will comprise an initial development of two LNG trains of approximately 6 million tons per annum each, and a subsequent development of a third train of approximately 6 mtpa.

Petronas, Sinopec, JAPEX, Indian Oil Corporation and PetroleumBRUNEI are all shareholders in Pacific NorthWest LNG and the associated natural gas supply.

LNG World News Staff