British Columbia Opens Door to USD 36 Billion LNG Facility

zoom The government of British Columbia and a consortium of companies led by Malaysias Petroliam Nasional Bhd (Petronas), have reached a preliminary agreement on taxes and royalties for the Pacific NorthWest LNG project, setting the stage for a potential USD 36-billion investment. BC Premier Christy Clark and Michael Culbert, president of Pacific NorthWest LNG, signed a memorandum of understanding that sets out the steps leading toward ratification of a project development agreement between government and the company. Michael de Jong, Minister of Finance, signed the project development agreement on behalf of government, which initiates a ratification process by both the company and the British Columbia Legislature. Rich Coleman, Deputy Premier and Minister of Natural Gas Development, signed the Province’s long-term royalty agreement with the company. Pacific NorthWest LNG plans to build an LNG facility on Lelu Island, located in the District of Port Edward on land administered by the Prince Rupert Port Authority. The first phase of the project would consist of two liquefaction trains, two LNG storage tanks, marine infrastructure with two berths for LNG carriers, a material offloading facility, as well as administration and auxiliary buildings. The facility would liquefy and export natural gas produced by Progress Energy Canada Ltd. in Northeast BC for transport to Lelu Island by the Prince Rupert Gas Transmission project. The province continues to consult with Tsimshian Nations regarding the Pacific Northwest LNG project. BC has also engaged with 19 First Nations along the proposed Prince Rupert Gas Transmission Pipeline route. Fourteen agreements related to the facility and pipeline have been achieved to date. Last week, the Lax Kw’alaams Nation voted to reject the North West LNG project, turning down a USD 1 billion compensation.