A major LNG deal for the B.C. government.
Premier Christy Clark has signed a memorandum of understanding with Michael Culbert, the president of Petronas-backed Pacific Northwest LNG, for a liquefied natural facility in Prince Rupert.
The first phase of the project would consist of two liquefaction trains, two LNG storage tanks, marine infrastructure with two berths for LNG carriers and a material offloading facility.
Clark says this sets the stage for a potential $36-billion investment in northern BC.
Culbert, however, is warning it is not a done deal yet.
“There is heavy lifting remaining on this project and we’re optimistic that through ongoing dialogue and consultation that we both move forward.”
The province is also still working on approval from First Nations.
CKNW business analyst Michael Levy says although an MOU is not a done deal, it is a vote of confidence, especially considering the fact Petronas is having huge challenges at home with its own infrastructure and business.
“So the fact they are going to go to the next step and sign this MOU tells us in no uncertain terms that they see a future for LNG and Petronas in BC.”
Levy adds it also shows B.C. is holding strong against LNG competition from countries like Australia and Qatar.
Jeremy Moorhouse, a senior analyst with Clean Energy Canada, says it’s possible B.C. can still achieve the cleanest LNG in the world, but natural gas is still a fossil fuel.
“Could increase emissions by up to 20 or 30 per cent when you include the facility, the pipeline and where the gas is going to come from. The government has set what I think is a good target for the facilities, but we haven’t seen from Petronas how they’re going to meet that target.”