Natural gas minister Rich Coleman (left)

Coleman plays down Petronas LNG threat

Talks going well with Malaysian energy giant, B.C.'s tax not a deal-breaker for LNG development, minister Rich Coleman says

WHISTLER – B.C.’s minister for natural gas development is playing down a threat from the president of Malaysian energy giant Petronas to withdraw from its $10 billion project to export liquefied natural gas from a terminal near Prince Rupert.

Petronas CEO Shamsul Abbas was quoted in the international business paper Financial Times Thursday accusing Canada and B.C. of “uncertainty, delay and short vision” in its regulations, taxes and “lack of appropriate incentives” to invest.

B.C. minister Rich Coleman said Thursday he contacted Petronas when he saw the report. He said Abbas has expressed similar concerns before, but B.C. negotiators continue to work on terms for a master development agreement.

Coleman said company representatives assured him the province has met every deadline Petronas has asked for, and he and Premier Christy Clark are set to meet with Abbas when he visits Canada next week.

“We know that we are getting to a spot competitively, globally, because everybody’s told us that, but he’s representing the interests of Petronas as we go through this,” Coleman said. “We’re going to represent the interests of British Columbia, to make sure B.C. gets its share of this opportunity.”

The Malaysian state-owned company is leading a consortium that includes Chinese, Japanese, Indian and Brunei investors for a pipeline and LNG processing in northern B.C. Petronas paid $5 billion last year to take over Progress Energy Canada, which has major shale gas holdings in northeast B.C. and Alberta.

The B.C. government plans to pass legislation in October to establish a tax on LNG exports. Coleman said the provincial tax is a small part of the negotiations, which include B.C.’s air quality requirements and protection of fish habitat at the Lelu Island site on the North Coast.

Fisheries impact from construction of the port could cause Petronas to change its design, which would delay development, but the project is not at risk, Coleman said.

“I think the only risk to any project in B.C. and anywhere in the world is the price of natural gas,” Coleman said. “If you can’t get the return on your investment and capital from the price you can sell it for, you’re not making the final investment decision, but that’s always been the case.”

NDP leader John Horgan said Abbas’ comments sound like “negotiating in public,” but B.C. has been slow to pursue export of vast shale gas reserves that have been known for many years.

VIDEO: Premier Christy Clark calls Petronas’ threat a negotiation tactic

Just Posted

Drag racing’s return to the Cache Creek area a thundering success

More than 1,500 spectators came through the gate at first drag races in area since 2015

McAbee Fossil Beds site re-opens to public after seven years

Free guided tours of the 53-million-year-old site taking place throughout the summer

Petition about local health care garners nearly 2,000 signatures

Area residents expressed concern about declining emergency department service at Ashcroft Hospital

Feedback still sought on Ashcroft/Cache Creek Eco-Depot

Three locations under consideration for Eco-Depot site

Lytton rainbow crosswalk shows support, awareness

Lytton’s RCMP detachment commander wanted to show support of the 2SLGBTQ+ community

VIDEO: Driver doing laps in busy Vancouver intersections nets charges

Toyota Camry spotted doing laps in intersection, driving towards pedestrians

Every situation is different, jurors hear at coroners inquest into Oak Bay teen’s overdose death

Pediatrician says involuntary treatment necessary following overdose, opioid use

RCMP across Canada to soon unionize, according to B.C. mayor

A spokeswoman for RCMP headquarters in Ottawa says it’s not yet a done deal

Explicit sex-ed guide for adults mistakenly given to Creston elementary students

The booklet clearly states online and inside that the guide contains sexually explicit information

Driver has $240K McLaren impounded minutes after buying it in West Vancouver

Officers clocked the car travelling at 160 km/h along Highway 1 in a 90 km/h zone

Former Vernon Judo coach pleads guilty to child pornography charges

Bryan Jeffrey McLachlan is set to return to court Sept. 4 for sentencing

B.C. Olympic skier sues Alpine Canada after coach’s sex offences

Bertrand Charest was convicted in 2017 on 37 charges

Former Canucks goalie Roberto Luongo to retire

‘Bobby Lou’ calls it a career after 19 NHL seasons

Most Read