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Indian Oil looks for cheaper site for Pacific NorthWest LNG terminal

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Reuters are reporting that Indian Oil Corp has announced that it is in talks with its partners to search for an alternative, cheaper site for the Pacific Northwest LNG terminal after the recent pullout of the lead developer cast doubt on the future of the Canadian project.

Petronas, which held a majority 62% stake in the proposed CAN$36 billion Pacific NorthWest LNG Project in British Columbia, announced last week that it was abandoning the plan due to weak global prices.

Indian Oil, which has a 10% stake in the Canadian project, remains interest in going ahead with at least part of the plan.

Indian Oil's head of business development said consortium partners are talking about alternatives.

Petronas's pullout dealt a blow to the project and its partners which would now have to invest additional capital to complete the project.

Indian Oil is the first partner to suggest the project could still go ahead, in modified form.

The other partners in the project are Chinese oil and gas giant Sinopec, with 15%, Japex Montney Ltd, with 10%, and Petroleum Brunei, with 3%.

Petronas may have to write off up to US$800 million for work already done on the Canadian project.

Japan Petroleum Exploration Co announced it would take a loss of about CAN$102 million due to the scrapping of the project.

Indian Oil Corp planned to lift 1.2 million t of LNG for 20 years from the British Columbia project for its 5 million tpy regasification LNG plant at Ennore in eastern India. Indian Oil was expecting deliveries from the western Canadian project to begin in 2020.

Read the article online at: https://www.lngindustry.com/liquefaction/04082017/indian-oil-looks-for-cheaper-site-for-pacific-northwest-lng-terminal/

 

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