British Columbia approves Petronas LNG project, two gas pipelines

Tue Nov 25, 2014 7:37pm EST
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VANCOUVER Nov 25 (Reuters) - British Columbia has approved a liquefied natural gas export terminal being developed by Malaysia's Petronas, along with two pipelines to service the province's fledging LNG industry, the province's Ministry of Environment said on Tuesday.

A federal environmental review of Petronas' Pacific NorthWest LNG project is still ongoing, with the Malaysian state-owned energy firm expected to make a final investment decision on the $11 billion facility before year end.

Provincial environmental assessment certificates were issued for Petronas' terminal, along with the Prince Rupert Gas Transmission pipeline, being developed by TransCanada Corp , and the Westcoast Connector Gas Transmission pipeline, proposed by Spectra Energy Corp.

More than a dozen LNG export terminals have been proposed for British Columbia as energy companies from around the world race to export cheap Canadian gas to international markets.

But uncertainties around taxation, the regulatory process and aboriginal consent have called into question whether any of the projects will ultimately be realized. (Reporting by Abhirup Roy in Bangalore and Julie Gordon in Vancouver; Editing by Diane Craft)