Petronas’ Canada LNG project has more support than it is made out to be



TransCanada announced that it had secured the final permit to build its 650 km  Coastal GasLink pipeline linking natural gas fields in northeastern British Columbia to LNG Canada’s proposed liquefied natural gas export project in Kitimat, B.C.

All it takes now is for LNG Canada to make a FID on their LNG export project in British Columbia for construction to commence.

But a day before that, there were reports that Canada LNG may not be able to secure a FID before the end of the year.

Apparently the project in Kitimat is competing for funding with two Shell LNG projects in the U.S., plus a chemicals plant in Pennsylvania, within the next 12 months.

While the Kitimat project is competing for funding, the Petronas-led consortium seems determined to proceed with the Lelu Island project despite it receiving very bad news coverage and more delays.

Petronas and its partners are still awaiting their environmental certification from the Canadian Environmental Assessment Agency while a decision by the government was supposed to be reached by mid-summer, which to us living near the equatorial line means absolutely nothing.

But Pacific NorthWest will submit new reports by mid-May, so that may mean months yet until a decision is made.

Calgary Herald reported that there are growing support from First Nations as their leaders are beginning to see the benefit of the project to their communities.

Pacific NorthWest have signed impact-benefit agreements with four of five First Nations for the LNG terminal near Prince Rupert, while the fifth had offered conditional support.

Sixteen of the nineteen First Nations that must be consulted along the Prince Rupert Gas Transmission project route have signed benefit agreements while the province says it is in discussions with the three remaining First Nations.

One of the First Nations yet to sign a pipeline agreement is the Nak’azdli in the Northern Interior.

Chief Fred Sam says they are in the midst of community discussions, but there is not universal opposition to a natural gas pipeline, as there was to Enbridge’s $7.9-billion Northern Gateway oil pipeline proposal.

“I think a lot of people are looking to the future where we need more funding than just (federal government) funding,” said Sam.

Source: Calgary Herald

There may be still pockets of opposition to the project, but it seems that it will not be overwhelmingly from the native First Nations as was previously being widely reported.

With the Aboriginal Rights and ecological conservation hurdle looking to be nearly resolved, Pacific NorthWest still have to contend with environmental issues of carbon emissions.



2 thoughts on “Petronas’ Canada LNG project has more support than it is made out to be

    1. Petronas is an oil & gas company. LNG is one of its main source of income. Canada has that stuff aplenty, it is a fairly peaceful country, no war raging or anything. Petronas and its partners have ready customers in Asia. Makes sense to invest in Canada, after all, Petronas is a gobal company.


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