Wednesday, May 20, 2015

Petronas to sign Memorandum of Understanding with British Columbia Gov't today

Another step is about to be reached in the process of moving forward British Columbia's LNG plans,  with word that Petronas, the principle proponent of the Pacific NorthWest LNG project for Lelu Island is about to sign a Memorandum of Understanding with the British Columbia Government.

It's anticipated that the Provincial Government will be offering up some details later today on the tax regime that will be in place for the project, as well as setting in place the steps for a project development agreement.

Those are  keys element towards the final aspects of the process for the project that could lead to a Final Investment Decision related to their project.

That final investment announcement is not expected to be received until later this year, with Petronas still awaiting word from the Canadian Environmental Assessment Agency.

The announcement of the MOU comes after the Environmental Assessment process was put back into motion last week after a significant stoppage, as we outlined on the blog yesterday, that EA process regained its forward momentum earlier this month.

Today's planned announcement of the arrangement, also comes with the echo of the Lax Kw'alaams announcement of May 13th, which outlined that results of a vote by the residents of the community to turn down a 1 billion dollar plus benefits package from Petronas.

That rejection of the package by Lax Kw'alaams has many industry observers wondering what the next step for the Malaysian energy giant might be, especially as it impacts on their preferred site of Lelu Island.

Global Television's Keith Baldrey was the first the deliver word regarding the planned announcement for later today.

The Globe and Mail's Brent Jang also had some background on the anticipated events of the day, which are expected to feature a briefing from Government officials and then a statement from Premier Christy Clark.

The main thrust of the impressions to this point regarding today's announcement is that it will send a signal to the investment community that LNG in British Columbia is still very much a plan that is in motion, with Petronas considered one of the front runners to reach the completion stage in the province.

More items related to the Pacific NorthWest proposal for the North Coast can be found here.

Update: We'll offer up links to information and background on todays announcement below as the day's events move forward.

BC Government Media Release -- Agreements lay out path for final decision on LNG project

Vancouver Sun -- B. C., Petronas sign deal toward proposed LNG project in province's northwest
Vancouver Sun -- B. C. Liberals lock in taxes, royalties for Pacific NorthWest LNG
Financial Post -- B . C. and Petronas reach LNG agreement paving way for energy giant's proposed $36 billion investment
CFTK TV -- BC signs LNG Deal for Petronas-led Project
Global BC -- B. C. signs deal toward proposed LNG project
Business in Vancouver -- B. C, commits future governments to terms for LNG
News 1130 -- LNG project led by Petronas takes a step forward
Globe and Mail -- B. C. pushing ahead with LNG proposal despite objections from First Nations
The Tyee -- Province forges ahead with LNG Development
CBC -- Christy Clark announces LNG agreement with Petronas

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