Pacific NorthWest LNG says it will not be proceeding with the $36-billion liquefied natural gas megaproject it had planned to build in British Columbia.
The consortium says the announcement by Petronas and its partners comes after a careful review of changes in market conditions.
Anuar Taib, executive vice-president and CEO (upstream) for Petronas, says prolonged depressed prices and shifts in the energy industry made the decision necessary.
LNG prices have been hit by a global oversupply as numerous projects have come online, challenging the economics of the development and others that were proposed in the province.
The consortium has already sunk billions into developing the natural gas fields in the B.C. interior, but the project would have required much more investment including an $11.4-billion LNG terminal in Port Edward, B.C.
The project, which secured Prime Minister Justin Trudeau’s approval last year, was proposed as a way to reduce coal use in Asia, but it has also faced criticism for the potential greenhouse gas emissions that would have resulted.