Tuesday 19 Nov 2024
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This article first appeared in The Edge Financial Daily, on February 14, 2017.

 

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) said it is considering shifting its Pacific Northwest project in Canada, amid opposition to the US$27 billion (RM119.88 billion) liquefied natural gas (LNG) terminal project due to environmental concerns.

Petronas chairman Tan Sri Mohd Sidek Hassan said the national oil major could move the project elsewhere if necessary.

“We have to take into account the various factors. If it is warranted, we will do it,” he told reporters on the sidelines of the “Economic Governance in the Public Sector” forum organised by the Malaysian Economic Association.

Bloomberg recently reported that the race for the office of the premier in British Columbia presented another hurdle for Petronas’ Pacific Northwest LNG terminal project.

It was reported that New Democratic Party leader John Horgan had told reporters that the project was “poorly sited” and had vowed to find a better location for the project if he gets elected.

Petronas was reportedly considering changing its plans for the LNG export terminal to avoid a sensitive marine area, with the docking facilities to be moved to the neighbouring Ridley Island, which could incur some additional cost.

The Canadian government gave the green light for the project in September last year but had placed 190 conditions on the project approval, which included a limit on carbon emissions.

It was a three-year wait for Petronas and its partners to acquire the permit to start works on the multibillion project, pending the release of the Canadian Environmental Assessment Agency’s final report.

Petronas has a majority stake in the project, while China Petrochemical Corp, Japan Petroleum Exportation Co, Indian Oil Corp and Brunei National Petroleum Co are minority shareholders.

In November 2015, Pacific Northwest LNG received an environmental certificate from the provincial government, which included eight conditions, including the development of an air quality and deposition monitoring programme and the development of a tissue sampling programme to assess toxin concentrations in fish.

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