Petronas LNG project described as having a "high degree of momentum"

For those looking for positive signs when it comes to the many LNG proposals for the North Coast, the Financial Post is offering up some interesting thoughts when it comes to the Petronas (Pacific Northwest LNG) project.

While the prospect of a final investment decision is not expected in the near future, Petronas appears to be busy laying much of the foundation for the project on the North Coast and beyond.

The Financial Post article focuses mainly on the work of Progress Energy, which is the gas development arm of the project and the rapid growth that it has realized since it was purchased by the Malaysian energy giant and became part of the Petronas project.

As part of the review, the various benchmarks that the Petronas plans have reached are outlined, from the various partnerships that they have formed through the last year with Asian buyers; to the number of exploratory wells that Progress is working on as part of the project.

The article offers up a well balanced review of the preparations and challenges ahead for the project, with market certainty for the natural gas product and an unknown when it comes to provincial taxation on the industry as key to the final decisions.

And while there is caution that some of those factors could change the dynamic at any time, and that final approval from the Malaysian company is not considered to be a formality, the consensus is that of the various projects that are being proposed for the region, Petronas seems to be at least six months ahead of the pack in their development planning.

Much of that success based on the partnerships they have built both in Canada and elsewhere in the world, an indication of the global nature of the projects that have been proposed for the North Coast.

For those seeking more background on the work involved in delivering a proposal to an active construction project, this article provides a timely review as to what the process looks like and where it may be going next.

For more on LNG developments on the North Coast see our archive page.