The Globe and Mail reports in its Tuesday, Oct. 7, edition that the Petronas-led liquefied natural
gas venture in British Columbia
will be delayed by as many as
15 years unless tax and regulatory
issues are resolved by month's
end, warns chief executive officer Shamsul Azhar Abbas. The Globe's Brent Jang writes that Mr. Abbas said the
next four weeks are crucial. He says Petronas
wants to reach a meeting of
minds by Oct. 31 with government
officials and regulators.
The Petronas-led Pacific NorthWest LNG joint venture has budgeted
$36-billion for its plans to
export LNG from the West Coast
to Asian buyers by early 2019. The
capital spending includes $11-billion
for a proposed export terminal
on Lelu Island, near
Prince Rupert in northwestern
B.C.
Mr. Shamsul said: "In order to remain competitive,
Petronas needs to secure
consensus on key principles vital
to the success of this project by
the end of October. ... Missing this date will have the
impact of having to defer our
investments until the next LNG
marketing window, anticipated in
10-15 years."
The Globe notes that Petronas
has spent billions of dollars, making it financially
painful if it were to
stage a full-scale withdrawal.
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