LNG project led by Petronas takes a step forward


VANCOUVER (NEWS1130) – The provincial government and Malaysian energy giant Petronas have signed an agreement towards a $36-billion liquefied natural gas project near Prince Rupert.

Premier Christy Clark announced the deal, which is a memorandum of understanding outlining steps towards a deal but it’s not a final investment decision by the company.

Petronas-controlled Pacific NorthWest LNG is proposing to build an LNG export facility at Lelu Island.  The project would be the largest capital investment in BC’s history.

The proposal includes long-term royalty agreements that bring revenue minimums to the province and rate stability to Petronas.

The royalty rates, which are pre-set annually, start at just above six per cent and rise to a maximum of 13.36 per cent, bringing an estimated $7.7 billion in revenue to the province over the 23 years of the proposed project.

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