MALAYSIA: Petronas Struggles To Justify Canadian LNG Project As Province Locks In Long-Term Tax, Royalty Terms

摘要

In signing a much-awaited memorandum of understanding (MOU) and two major agreements with Pacific NorthWest LNG (PNW) on May 20, the British Columbia government made good its promised support for the company’s proposed project to produce liquefied natural gas (LNG) in northern BC for export to Asia. The documents also sent an important secondary message that the provincial government has bent over backwards to accommodate the company’s demands after a public airing of complaints and threats. Amid critics’ outcry of a sell-out, Premier Christy Clark boldly locked in provincial royalties, taxes, regulations and carbon terms for decades to entice PNW to invest another C$30 billion to launch the LNG project that includes an export terminal near Prince Rupert. Malaysian state energy firm Petronas, which owns a 62% stake in PNW, has already invested C$6 billion through its 2012 acquisition of the project’s upstream assets held by Progress Energy. (US$1=C$1.20).