The Globe and Mail: B.C., Petronas Reach Deal on LNG Project Development Agreement

The B.C. government will announce plans on Wednesday to sign a project development agreement with the Pacific NorthWest LNG joint venture led by Malaysia’s Petronas.

Both sides agreed in May, 2014, to assign officials to prepare the terms of reference, leading to the deal. The project development agreement is subject to approval later this year from the B.C. legislature.

B.C. Premier Christy Clark will make the announcement at a news conference in Vancouver, an industry source said Tuesday night.

While further details will be disclosed later this year, the project development agreement spells out broad terms for taxes and B.C. LNG rules.

Pacific NorthWest LNG has yet to make a final investment decision and the Canadian Environmental Assessment Agency recently restarted its review of the controversial project. Federal Environment Minister Leona Aglukkaq could render a final decision on the LNG project some time between mid-September and early October, depending on whether there are further delays in the lengthy regulatory process. MORE