Petronas' Canadian LNG Project Gets Environmental Permit

British Columbia on Tuesday granted environmental permit to Petronas backed Pacific NorthWest LNG export facility in Prince Rupert and the Prince Rupert Gas Transmission pipeline.

The Pacific NorthWest LNG export facility is also the subject of a federal environmental assessment. 

The facility involves construction and operation of an LNG export facility located on Lelu Island and adjacent water lots in the Port of Prince Rupert. The estimated capital cost is $11.4 billion.

The Prince Rupert Gas Transmission pipeline involves construction and operation of a 900-kilometre natural gas pipeline from near the District of Hudson’s Hope in northeastern B.C. to the Pacific NorthWest LNG export facility. The estimated capital cost is $5 billion.

Last month, CEO of the Malaysian energy major warned that the project could be delayed by up to 15 years unless tax and regulatory issues are resolved by year end.

Petronas, Sinopec, JAPEX, Indian Oil Corporation and PetroleumBRUNEI are all shareholders in Pacific NorthWest LNG and the associated natural gas supply.