Petronas could turn its back on Canada LNG project

Malaysia’s Petronas could well turn away from its $10 billion LNG project in Canada saying the country’s progress on a new taxation scheme is rather slow. 

Even though British Columbia government said the legislation will be out in October and approved by the end of November, Petronas spokesperson confirmed the comments made by Shamsul Abbas, the company’s chief executive in an interview with Financial Times, that he doubted Petronas would be able to make the final investment decision by the end of the year.

Petronas said it needs assurance that the project is economically viable and satisfies its investment criteria before going on in the project, reports Reuters.

Shamsul was also quoted saying, “Rather than ensuring the development of the LNG industry through appropriate incentives and assurance of legal and fiscal stability, the Canadian landscape of LNG development is now one of uncertainty, delay and short vision.”

LNG World News Staff, September 25, 2014; Image: Pacific NorthWest LNG