The lead member of the consortium behind the proposed Pacific Northwest LNG project has conceded cash from operations will cover neither its capital expenses nor committed dividends this year.
The state-owned energy giant Petronas, which contributes almost half of Malaysia’s oil revenue, will thus be forced to draw on reserves and move forward with further cost savings.
Weak global oil prices have left the country with a devalued currency and it’s now facing the possibility of a credit-rating downgrade.
Petronas has reported net profit fell 47 per cent in the second quarter of this year due to the weaker crude prices, and lower sales of oil and LNG.
However, the company President says “All the plans are place” to meet the dividend promised to the government, and it still intends to move forward with the liquefied natural gas project near Prince Rupert.
He adds, “We are at the tail end of the process and are confident of the outcome.”