VICTORIA – British Columbia’s government and Malaysian energy giant Petronas have signed a letter of intent that could lead to a final investment decision this year on building a multibillion liquefied natural gas project in the Prince Rupert area.
The letter calls for the government and Petronas to negotiate a project development agreement by November of this year.
Premier Christy Clark, who is travelling in Malaysia on an LNG trade mission, signed the letter of intent along with Petronas president and group chief executive officer Tan Sri Dato’ Shamsul Azhar Abbas.
The letter states Petronas is seeking certainty from the government about costs applicable to LNG investments, while the B.C. government says it wants the company to continue working towards a final investment decision.
Earlier this year, the Canadian Association of Petroleum Producers said the LNG industry was lukewarm towards the Liberal government’s proposed LNG tax, which could include a seven per cent tax once the plants are up and running.
The government is expected to introduce its complete LNG tax and royalty structure by the fall.