On March 25 2019 the BC NDP government passed a law conceding tax exemptions and commitments to low electricity prices to the industry. The NDP has, despite challenging the previous Liberals government on their concessions to the PETRONAS Lelu Island LNG initiative, in fact often foreshadowed their present pro-LNG position. According to Carol Linnitt this NDP concession amounts to an incentive package worth an estimated $5.35 billion (I presume this is calculated over the 40 year accounting period being used in appraising this development) to the LNG Canada consortium of which PETRONAS itself is a 25% stake-holder.
Although PETRONAS’ own $36-billion Pacific NorthWest LNG processing and shipping terminal on Lelu Island was aborted in the face of Lax Kwa’laams opposition and a collapsing market, this Malaysian crown corporation has persisted with its interest in downstream LNG development in British Columbia. Upstream, PETRONAS is presently one of the largest producers of natural gas in the province and, according to Ben Parfitt, it is the “the single-largest subsurface rights holder of natural gas assets in Northeast B.C.” While PETRONAS is well set for prominence both upstream and downstream in the BC LNG industry it, there is a blockage for them midstream. Development of the connecting Coastal Gaslink pipeline has been retarded by determined resistance from the Wet’suwet’en First Nation, through whose territory in must pass.
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In an earlier post I had noted how on July 13 2018, LNG Canada formally welcomed PETRONAS as their fifth Joint Venture participant and how this investment was connected with TransCanada’s Coastal GasLink pipeline that is building to transport the natural gas from Dawson Creek to the LNG Canada terminal in Kitimat. Much of the gas to be transported to market via the pipeline and terminal will , of course, come from PETRONAS owned Progress Energy’s own gas fields in the North Montney area. On November 22, 2018 Progress Energy Canada Ltd. changed its name to PETRONAS Energy Canada Ltd. (PETRONAS Canada). Mark Fitzgerald, President & CEO of PETRONAS Canada said, “The name change is a reflection of our parent company’s commitment to Canada and the strength of our business in the company’s overall portfolio.” Malaysian Crown corporation PETRONAS now not only owns one of the largest natural gas resources in the Montney basin, but is also a key player in getting Canadian LNG to market across the Pacific ocean.