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|Petronas Defers FID on LNG Project in B.C.|
|= Situation has become unclear mostly due to declining oil price =|
Petronas announced on December 3 that it would defer Final Investment Decision (FID) on Pacific Northwest LNG Project (PNW-LNG), a project to produce LNG in which Petronas is to be the operator. The Malaysian company and its partners decided to continue to review the project's economic viability presenting challenge in a time of declining oil prices.|
The decision does not mean Petronas' withdrawal from the project, but means, according to Shamsul Azhar Abbas, President of Petronas, the company will "make FID as soon as possible" when the situation surrounding the project, including competition from other LNG producing countries, is clarified and its economic viability is ensured.
Petronas also commented that the costs of the project, about US$36 billion, remained challenging and needed to be reduced further before a positive FID would be made.
PNW-LNG is to build a facility to produce 12 million tpy of LNG on Lelu Island, B.C., in which Petronas has 62% and the partners, China Petrochemical Corporation (SINOPEC), Japan Petroleum Exploration Company (JAPEX), Indian Oil Corporation (IOC) and Brunei Petroleum have 15%, 10%, 10% and 3%, respectively.
|last modified : Wed 10 Dec, 2014 [10:01]|