Malaysian energy company Petronas and its partners announced that they have decided not to proceed with the Pacific NorthWest LNG project at Port Edward in British Columbia, Canada. The decision was made after a review of the project amid changes in market conditions.
Under the initial plan, Petronas would liquefy Canada’s gas and launch it in Asian market.
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.”
However, Mr Taib continued, the company and its North Montney Joint Venture partners, remain committed to developing its natural gas assets in Canada and will continue to explore all options as part of its long-term investment strategy moving forward.
The company’s commitment in Canada continues through Progress Energy Canada Ltd and its inventory of natural gas resources where the subsidiary plays a key role in supporting Petronas’ growth strategy in North America.
This cancellation joins a series of LNG projects cancelled in last months, as a result from the drop in LNG prices and the increase in LNG export planned in North America.
Last year, Woodside Petroleum Ltd. also put off the building a floating LNG terminal off Australia’s western coast of $40 billion total worth.
