Pacific NorthWest LNG announced today it is not expecting to make a final investment decision by the end of the year as initially anticipated.
"PETRONAS and its partners have decided to defer the project's $36 billion Final Investment Decision pending further clarity on substantive items of importance to ensure that critical project components align with economic viability of the Project and competition from other LNG producing countries," read a statement from the company.
"Costs associated with the pipeline and LNG facility remain challenging and must be reduced further before a positive FID can be undertaken. At the same time, Pacific NorthWest LNG will continue work to secure necessary regulatory and other approvals from the Government of Canada."
The announcement came following a meeting with provincial government officials that the company said "brought resolution to key provincial policy matters that provided added certainty". The announcement, included statements from Minister of Natural Gas Development Coleman and Premier Christy Clark, said the company will conotinue to invest in the project while the delay takes place.
"PETRONAS, through its upstream unconventional company, Progress Energy Canada Ltd. and its partners, will continue to invest in its natural gas development in British Columbia at a measured pace until such time as a positive FID is made," read the statement.
Tan Sri Shamsul Azhar Abbas, President and Group Chief Executive Officer of PETRONAS, said there is no timeline in place for a final investment decision.
"PETRONAS hopes that all outstanding factors can be resolved as soon as possible to enable the Final Investment Decision to be made within the identified LNG supply and demand window. This is vital in light of the current intense market environment and for Pacific NorthWest LNG not to lose out on long term contracts to competitive United States LNG projects," he said.