The government of British Columbia (B.C.) has reached an agreement with Pacific NorthWest LNG to “establish the path to a final investment decision (FID) on the project”, according to a statement on its website. The agreement also lays the foundations for a potential US$36 billion investment in Northern B.C.
B.C. Premier, Christy Clark, and the President of Pacific NorthWest LNG, Michael Culbert, signed a memorandum of understanding (MoU) that outlines the steps toward ratification of a project development agreement. Michael de Jong, Minister of Finance, signed the project development agreement on behalf of government, which initiates a ratification process by both the company and the British Columbia Legislature. Rich Coleman, Deputy Premier and Minister of Natural Gas Development, signed the Province’s long-term royalty agreement with the company.
Pacific NorthWest LNG, owned in majority by Malaysia's Petronas, plans to build an LNG facility on Lelu Island, located in the District of Port Edward on land administered by the Prince Rupert Port Authority. Phase one of the LNG project consists of two liquefaction trains, two LNG storage tanks, marine infrastructure with two berths for LNG carriers, a material offloading facility, as well as administration and auxiliary buildings. The facility would liquefy and export natural gas produced by Progress Energy Canada Ltd in Northeast B.C. for transport to Lelu Island by the Prince Rupert Gas Transmission project.
Christy Clark said: “Today reflects the beginning of the company’s final decision path toward an investment decision […] [The] agreement is the product of tremendous effort right across government and among many partners to recognise a generational opportunity and ensure that we are ready to seize it, for the benefit of British Columbians today and those who are to come.”
Michael Culbert said: “The substantial progress experienced by Pacific NorthWest LNG over the past two years is a product of hard work, compromise and co-operation […] Today’s commitment by the government of B.C. to legislate our Project Development Agreement provides the certainty that our investors need as we approach a decision whether to proceed with the project.”
Michael de Jong added: “The benefits from LNG activity will be significant for British Columbia’s economy, and we want to help companies and communities make that happen […] These agreements will help provide LNG companies with the kind of certainty they need to make long-term plans to do business in communities across B.C.”
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/21052015/bc-reaches-agreement-with-pacific-northwest-lng-799/