The collapse of Petronas Pacific Northwest LNG project

While the Malaysian energy company said it remains committed to developing its gas assets in Canada, Petronas announced yesterday it has, along with its partners, decided not to proceed with the Pacific NorthWest LNG project at Port Edward in British Columbia in Canada.

“The decision was made after a careful and total review of the project amid changes in market conditions,” said the company in a media release late last night.

Petronas’ Executive Vice President & Chief Executive Officer Upstream, Anuar Taib said: “We are disappointed that the extremely challenging environment brought about by the prolonged depressed prices and shifts in the energy industry have led us to this decision.”

“We, along with our North Montney Joint Venture partners, remain committed to developing our significant natural gas assets in Canada and will continue to explore all options as part of our long-term investment strategy moving forward,” added Anuar.

The Malaysian state-owned energy company were to invest massively in the proposed US$29 billion LNG project in western Canada.

It is a blow to Canada’s ambitions to become a global LNG player but years of delay due to collapsing prices were expected said experts.

However, Petronas said its commitment in Canada continues through Progress Energy Canada Ltd and its world-class inventory of natural gas resources where the subsidiary plays a key role in supporting the Malaysian company’s growth strategy in North America.