In a media release Tuesday, Petronas and its partners have decided not to proceed with the Pacific NorthWest LNG project at Port Edward in British Columbia, Canada.
The decision was made after a careful and total review of the project amid changes in market conditions.
“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,” said Petronas’ Executive Vice President & Chief Executive Officer Upstream, Anuar Taib.
“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 new B.C. Minister of Energy, Mines and Petroleum Resources Michelle Mungall said the project was "uneconomical to move forward. We respect the company's decision."
Mungall, speaking at a news conference, said the decision was due to the price of the product on the world stage.
"This is about global market pricing, this isn't about anything else other than Petronas looking at that long-term reality in the international market," the Nelson Creston MLA explained.
"Our government is committed to working with the LNG industry to ensure we are competitive."
The Pacific NorthWest LNG, when up and running would have shipped 19 million tonnes of liquefied gas to markets in Asia every year, was supposed to be the largest of the promised LNG facilities, and create 4,500 jobs.
Andrew Weaver, leader of the B.C. Green caucus, asid since the beginning it has been clear that the global marketplace does not support the LNG industry that the BC Liberals promised in their 2013 election campaign..
“Rather than doing the hard work required to strengthen and secure the economic opportunities already available in other sectors, the BC Liberals recklessly went all in on a single industry,” said Weaver. "They let opportunities for innovation and economic development in clean technology, the resource sector, and other major BC industries fall by the wayside.
Weaver said BC’s future does not lie in chasing yesterday’s fossil fuel economy; it lies in taking advantage of opportunities in the emerging economy in order to create economic prosperity in BC.
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 Petronas’ growth strategy in North America.