Petronas to delay LNG decision beyond end of 2014

Those items of importance pertain to costs and competition from other LNG producing countries. Petronas had hoped issues relating to the supply pipeline cost and plant would be resolved shortly, however there is no actual timetable when that may be. The decision to delay a final investment decision was made last week.

The $36,000,000,000 project would cover the first phase of the plant, shale gas fields development in the northeastern part of the province, and a connecting pipeline.

In the short term Petronas will continue to develop and explore their B.C. Montney gas play by drilling.

The tax rate in the province for LNG players is slated at 3.5 per cent, which is half of what was previously proposed. The rate will increase in 2037 when the industry is established to five per cent.

Petronas has minority partners in the project in China Petrochemical Corporation, Sinopec, Japan Petroleum Exploration, Brunei National Petroleum, and Indian Oil Corporation.

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