Petronas: Scrapping C$36b Canadian LNG project a 'wake-up call' for industry, policy makers

-A +A

KUALA LUMPUR (Oct 13): Petroliam Nasional Bhd (Petronas) said its decision to scrap the C$36 billion (about RM122 billion) Pacific NorthWest liquefied natural gas (LNG) project in Canada may be a "wake-up call" for the industry and policy makers there that long regulatory timelines can ultimately have an impact on whether projects can go ahead.

The Canadian Press quoted Petronas wholly-owned unit Progress Energy Canada Ltd vice president of production Dennis Lawrence as saying delays meant the project in British Columbia missed its opportunity to enter the global LNG market when it had a good chance to thrive.

"We think it may be a bit of a wake-up call to us as an industry, to governments, to regulators within Canada that time is actually of utmost importance on these projects, that delays and long regulatory timelines can ultimately have an impact on whether projects go ahead or not," Lawrence said at a panel discussion at the Calgary Energy Roundtable on Wednesday.

Lawrence said Petronas' decision was difficult to make but "headwinds were too great" for the company and its partners to green light the project.

Looking ahead, he said the consortium is now focused on developing access to North American gas markets.