British Columbia approves Petronas LNG project, pipelines

British Columbia has approved a liquefied natural gas export terminal being developed by Malaysia's Petronas, along with two pipelines to service Canada's fledgling LNG industry, according to Reuters.

A federal environmental review of Petronas' Pacific NorthWest LNG project is continuing, with the Malaysian state-owned energy firm expected to make a final investment decision on the $11 billion facility before the end of the year.

Reuters said that provincial environmental assessment certificates were issued Nov. 25 for Petronas' terminal, along with the Prince Rupert Gas Transmission (PRGT) pipeline, which is being developed by TransCanada Corp., and the Westcoast Connector Gas Transmission pipeline, proposed by Spectra Energy Corp.

The PRGT pipeline would feed Petronas' LNG terminal, while the Westcoast Connector line would send gas to BG Group's proposed Prince Rupert LNG project. BG has pushed back a final investment decision on its export facility by a year into 2017.

Reuters notes that, in addition to the federal review, Petronas must now meet eight social and environmental conditions set out in the provincial approval and secure various permits from all levels of government. The company is also in the process of negotiating with aboriginal communities and refining its terminal design plans to mitigate the impact on sensitive fish populations.

 

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