The Pacific Northwest LNG megaproject in Port Edward, B.C. has been cancelled due to market conditions.
Malaysian energy giant Petronas and its partners have scrapped plans for the proposed natural gas export facility after careful reviews of the project and the state of changing market conditions including low LNG prices.
“We are disappointed that 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.
“Petronas and its North Montney Joint Venture partners remain committed to developing their significant natural gas assets in Canada and will continue to explore all options as part of its long-term investment strategy moving forward.”
The Pacific NorthWest LNG project was touted as a major opportunity to grow the B.C. economy. The project represents one of Canada’s largest resource development projects with a total capital investment of up to $36 billion when accounting for upstream natural gas development.
Petronas’ decision to scrap its plan to build the facility is a tough blow for the B.C. construction industry, according to the president of the Independent Contractors and Businesses Association (ICBA).
“We are deeply disappointed that PNW will not go forward, as it means thousands of construction jobs will not materialize,” said ICBA president Chris Gardner.
PNW would have created 4,500 construction jobs, 330 long-term operations positions, and up to $1.3 billion per year in government revenue.
“No jurisdiction does energy extraction in a better, cleaner, more socially responsible way than Canada,” said Gardner. “This is a significant lost opportunity that would have brought many benefits. Canada has to act faster to seize the opportunities that our responsible resource development industries can deliver.”
