B.C.’s LNG outlook dims after $36B Pacific NorthWest LNG project killed

Jul 26, 2017 | 1:26 PM

VANCOUVER — Experts say dreams of a booming liquefied natural gas industry in British Columbia appear to be evaporating, at least for the foreseeable future, after Petronas and its partners scrapped a $36-billion megaproject in the province.

The proponents of two other major projects say they are proceeding toward final investment decisions, although Chevron says it has reduced capital spending for its proposed facility in Kitimat in response to market conditions.

A consortium led by Malaysia’s state-owned Petronas announced yesterday it would not proceed with the Pacific NorthWest LNG project near Port Edward, B.C., due to a downturn in market conditions.

GMP FirstEnergy analyst Martin King says the outlook for LNG on Canada’s West Coast has been negative for years and he says the likelihood is low that other large, expensive projects will proceed.