Financial Post: Petronas to Decide on Canadian LNG Project by June

Malaysia’s Petronas expects to make a final investment decision on an US$11-billion liquefied natural gas (LNG) export terminal in British Columbia by the end of June, after postponing the decision late last year, its chief executive officer said.

CEO Shamsul Azhar Abbas also said the state-owned company is in talks with a new Chinese buyer on a 10-12 percent stake in the Pacific NorthWest LNG project, potentially bringing a sixth partner into the joint venture.

“We said many months ago it would be ideal if we were to work out a 50% farm-out of the Canadian project. So far we have achieved 38%,” Shamsul said at a press event late on Friday, adding that the latest talks should close the gap.

With nearly 90% of the plant’s 12 million tonnes per annum output contracted out to Chinese, Indian and Japanese importers, the company is in good shape to made a final decision on the LNG terminal, Shamsul said.

Petronas delayed giving a final go-ahead on the project in December, citing high costs and other outstanding issues while plunging oil and LNG prices clouded outlooks. MORE