LNG project led by Petronas takes a step forward
Posted May 20, 2015 10:54 am.
Last Updated May 20, 2015 10:57 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – The provincial government and Malaysian energy giant Petronas have signed an agreement towards a $36-billion liquefied natural gas project near Prince Rupert.
Premier Christy Clark announced the deal, which is a memorandum of understanding outlining steps towards a deal but it’s not a final investment decision by the company.
Petronas-controlled Pacific NorthWest LNG is proposing to build an LNG export facility at Lelu Island. The project would be the largest capital investment in BC’s history.
The proposal includes long-term royalty agreements that bring revenue minimums to the province and rate stability to Petronas.
The royalty rates, which are pre-set annually, start at just above six per cent and rise to a maximum of 13.36 per cent, bringing an estimated $7.7 billion in revenue to the province over the 23 years of the proposed project.
