Petronas approves Prince Rupert LNG terminal plans, offers larger investment possibilities

It will be full steam ahead with a planned LNG export terminal for Lelu Island, as Petronas, the Malaysian energy giant announced on Tuesday, that they were going forward with their development plans for the terminal near Prince Rupert.

The terminal will be constructed and operated under the working name of Pacific Northwest LNG.

The much anticipated decision was announced today by Petronas and Progress Energy officials, who gave their approval for the 9 to 11 billion dollar initial investment, despite the current setback in the bid by Petronas to to take over the Canadian based energy company, a condition that many thought was key to any terminal announcement.

Instead, Petronas put aside that setback for the moment, to instead focus on the future and the liquefied natural gas needs moving forward, laying the groundwork for what would be one of the key investments in Prince Rupert in recent years.

They haven't given up their plans however of seeking a larger share of the Canadian energy marketplace, still hopeful of a resolution to their difficulties with Investment Canada and offering up even more investment in British Columbia's northeast gas fields, as a tempting partnership opportunity.

One which the Petronas/Progress partnership suggested would not only create jobs and tax revenues, but develop an entirely new industrial base for the province, making British Columbia competitive in the world markets, with a strategic partner into the Asian Gateway.

Should the Federal Government revisit their decision on the proposed takeover, the impact on the proposed Lelu Island facility would be one of instant growth, with Petronas/Progress outlining that should the Government approve their deal, the Lelu Island facility would require a further expansion to meet the increased demand that would be in place.

The Vancouver Sun had a full review of today's developments and the impact of it on the energy and investment sector in British Columbia.

Other news reviews of the proposed project can be found below.

Globe and Mail-- Petronas vows bigger B. C. LNG plant if Ottawa okays Progress bid
National Post-- Petronas-Progress LNG export project moves ahead
National Post-- Petronas and Progress promise bigger LNG plant if Ottawa approves $6B takeover
National Post-- Canada shouldn't penalize Petronas over China: Mahathir
Toronto Star-- Progress, Petronas LNG projcet moves to next phase
CFTK TV-- North Coast LNG Export Facility Project Moves Major Step Forward
Northern View-- Petronas, Progress Energy moving to next stage of Lelu Island LNG terminal development

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