Quote:
Originally Posted by Brewmaster
Even with the conditional approval, I have serious doubts that Pacific NorthWest gets built. The economic environment to sell LNG has changed since these projects were first tabled. Terminals in the US and Australia have moved ahead and are seen as lower risk investments due to social and environmental issues in BC. Potential LNG customers are no longer willing to lock in long term fixed contracts that underpinned the viability of these projects, and spot prices have fallen dramatically alongside the price of crude oil.
That being said, if Petronas can work through the 190 conditions and find the money to get this terminal built, it will be a significant boon for the Canadian energy industry. Exporting up to 2.5 bcf/d would give a shot in the arm to the companies drilling in NE BC and help support the dwindling AECO price that AB producers are seeing.
|
The majority of the conditions are items that are spec or industry standard already. There are probably more than a few tough ones, but I believe that the majority of the conditions can be met without any deal breakers.