Who Is BC’s Big LNG Partner? A Petronas Primer
Group led by Malaysia’s national oil company aims to build terminal near Prince Rupert.
Just one week after the Lax Kw’alaams band rejected a $1-billion offer by Petronas to build a liquefied natural gas terminal at the mouth of the Skeena River in British Columbia, Premier Christy Clark has signed an agreement with Malaysia’s national oil company to “establish the path to a final investment decision on the project.”
Part of that path includes a long-term commitment by the provincial government not to raise natural gas royalties, regardless of changes in global prices for the commodity.
Natural gas, like oil, is one of the world’s most volatile commodities in price.
“With this certainty, industry can plan their operations over a longer period of time and commit capital to jobs and production needs, while the Province has a guaranteed royalty revenue each year,” said a government news release.
Pacific NorthWest LNG, which is largely owned by Petronas, has yet to make a final investment decision, and the proposed multibillion-dollar project near Prince Rupert must still pass an environmental review.
Just what kind of company is Petronas, and what’s its relationship to the Malaysian government? The Tyee looked at the public record.
1. The government of Malaysia set upthe national oil company in 1974 when oil prices jumped from $1.50 to $12. The government did so with the goal of safeguarding “the sovereign rights of Malaysia and the legitimate rights and interests of Malaysians in the ownership and development of petroleum resources.” The company’s success has helped the government to reach out to the Muslim world.
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