Malaysian energy company Petroliam Nasional Bhd, also known as Petronas, announced early in December it would delay the decision of whether to build a liquefied natural gas (LNG) export plant in British Columbia, Canada. The facility would be a LNG terminal for Lelu Island, and was projected to cost about 11.4 billion Canadian dollars.
Petronas was originally going to make a decision regarding financing the facility by the end of the year, but decided to defer any action for now. The company was set to invest more than $36 billion Canadian dollars into the natural gas project including the facility, which would cool and compress natural gas fed from two planned natural gas pipelines for transport overseas.
The reason for the delay was the high costs associated with constructing such a facility, The Wall Street Journal reported. Petronas also recently announced it would need to reduce capital spending next year by up to 20 percent because of decreasing oil prices. Additionally, the company is worried about the competitiveness of the plant compared to natural gas facilities in the U.S.