B.C. LNG project scrapped due to ‘changes in market conditions’
The announcement comes after a careful review by Petronas revealed "prolonged, depressed prices"
Copyright © Western Investor
The $11.4-billion Pacific NorthWest LNG project approved last year by the federal government will not be going ahead, the company announced July 25.
Petronas and its partners have scrapped plans for the proposed natural gas export facility after careful reviews of the project revealed an alarming change in market conditions.
“We are disappointed by the extremely challenging environment brought about by the prolonged depressed prices and shifts in the energy industry have led us to this decision,” said Anuar Taib, chairman of the PNW LNG board.
The natural gas terminal was to be built in Port Edward on B.C.’s northern coast near Prince Rupert. The terminals would have ship liquefied natural gas to Asia, allowing B.C. gas to trade on the world market.
The LNG project was seen by some northern B.C. locals as a jolt of hope for the region's economy, Western Investor reported last October
. However, the project garnered critisism from environmental groups and First Nations alike.
Clean energy advocates at The Pembina Institute were pleased to see the project axed and hope the move will inspire the province to green light more energy-efficient projects in the future.
"LNG demand and prices have fallen as the world transitions to renewable sources of energy," said Karen Tam Wu, acting director at Pembina. "We now have an important opportunity to ensure B.C. is not left behind as the global economy shifts and the costs of a changing climate begin to mount."
PNW LNG says it's invested $400 million on the site so far. The project's cancellation will impact 44 current jobs, Taib announced at a press conference following the announcement.