Some clouds on the LNG horizon

For the moment it seems, some of that bubbling euphoria over LNG terminal development on the North Coast seems to have come crashing to earth.

Over the weekend, Christian Paradis, the Minister of Industry turned down a takeover bid of Canadian based Progress Energy Resources Corporation by the Malaysian Oil and Gas Giant Petronas.

The Minister's announcement, issued late into the evening on Friday (a time frame that has more than a few observers shaking their heads at how things are done in Ottawa) had repercussions on oil and gas stocks on the Toronto Stock Exchange on Monday.

The decision also seems to have sent the  local newspaper the Northern View to hit the Klaxon horn with  thoughts that one of the proposed LNG projects for Prince Rupert could be in great peril.

The Northern View, complete with a most alarming headline, offered up a sense of foreboding over the project's future, reinforcing the potential loss of future jobs that could come from the governments  midnight hour, last minute decision.

As of yet however, no official word has been issued from the Progress/Petronas group as to the fate of the proposed local project. Officials there perhaps a tad busy taking a second look at their proposal and how it may be revised to provide reassurances to Ottawa over the seemingly contentious sticking point of "net benefit".

In fact, signs from Ottawa indicate that the process continues on, the Petronas deal perhaps not quite as dead as previously thought.

The Federal Government has advised Petronas officials to revisit their proposal and offer up an amended vision within 30 days.

Some background on the decision to refuse the takeover bid however may prove helpful to the overall picture, a review of the weekend decision offering a bit of balance and perhaps some thoughts on where things may go from here can be found below.

Calgary Herald-- Ottawa will approve $5.2B Petronas-Progress takeover
National Post-- Petronas deal on hold, not dead
National Post-- Blockage of Petronas-Progress deal sends ripples through oil patch
National Post-- Petronas-Progress to meet Investment Canada officials 'to better understand' rules
National Post-- Progress CEO optimistic Petronas deal will go forward
National Post-- Top 4 takeaways from the Petronas- Progress decision
Financial Times-- Canada, Petronas-Progress and Cnooc-Nexen: the bright side
Vancouver Sun-- BC Energy Minister mystified after Ottawa nixes key takeover ...
Vancouver Sun-- Progress shares tumble after Christian Paradis nixes Petronas deal
Vancouver Sun-- Canada blocks $5.2 billion Petronas-Progress deal 
Vancouver Sun-- Rejection of Petronas' bid reveals why we need to abolish test of "net benefit"
Macleans-- Petronas, Petronas, Petronas
Macleans-- Petronas and everything after
Ottawa Citizen-- Stephen Harper sheds no light on why Ottawa spiked Petronas deal, promises clarity soon
Ottawa Citizen-- Take a deep breath on Progress deal
CBC.ca-- Harper defends Patronas decision, vows new investment rules
CBC.ca-- Energy company upset feds blocked Malaysian takeover
CTV News-- Foreign direct investment must benefit Canada: Flaherty
Channel News Asia-- Malaysia's Petronas to appeal against Canadian decision
Channel News Asia-- Petronas will continue to pursue deals in Canada: Malaysia trade minister

For a review of the local aspects of the Petronas LNG project, check our LNG Development Archives