The Globe and Mail: Key Decision Looms on Future of Pacific NorthWest LNG Project

A consortium led by Malaysia’s state-owned Petronas is slated to make a preliminary decision this week on whether to forge ahead with plans to export liquefied natural gas from British Columbia.

The decision could be made and announced as early as Thursday night after one of the top executives from Petronas visits Vancouver to discuss key issues with management at Pacific NorthWest LNG and other representatives from the joint venture. Petronas is the lead partner in the project backed by two firms from China and one each from Japan, India and Brunei.

A Petronas spokesman in Kuala Lumpur confirmed that Wee Yiaw Hin, a Petronas executive vice-president who serves as Pacific NorthWest LNG chairman, will be at the Vancouver meeting. While the Petronas spokesman declined to comment on Thursday’s agenda, an industry observer said Mr. Wee and other officials are scheduled to review the economics of the project, tally the progress so far and examine hurdles still ahead.

Pacific NorthWest LNG will have the option to render a “soft” investment decision to move forward, and set aside environmental and First Nations issues to resolve at a later date, the observer said. Under that scenario, a final investment decision would be made this fall, pending the outcome of a federal environment assessment. MORE