Christy Clark unconcerned as Petronas teeters on $10-billion LNG investment

Christy Clark on LNG | BCBusiness

Petronas’s CEO says LNG taxes here are too high and that he’s uncertain about his project’s future, while Clark says negotiations are ongoing

Petronas, the Malaysian state-owned oil and gas producer, has threatened to pull out of its $10-billion pipeline and LNG terminal project, citing uncertainty over B.C.’s future manufacturing tax on natural gas exports.
In an interview with the Financial Times, Petronas CEO Shamsul Abbas said that the company was “ready to call off” the project, following the province’s announcement that it would be imposing an LNG manufacturing tax and delays in the approval process. “The way things are developing the project remains uncertain and I doubt we will be able to make a positive [final investment decision] by year end.
“Rather than ensuring the development of the LNG industry through appropriate incentives and assurances of legal and fiscal stability, the Canadian landscape of LNG development is now one of uncertainty, delay and short vision,” said Mr. Abbas, who is expected to be in Canada Friday.
Premier Christy Clark chalked up those comments as a ‘bargaining ploy,’ speaking to reporters following the signing of a new trade deal with Guangdong Thursday morning. “I’m confident a deal will be reached,” she said. “We’re absolutely on schedule, we’re right on target.”
Petronas currently owns 62 per cent of the project. China’s Sinopec has a 15 per cent stake, while a subsidiary of Japan Petroleum Exploration and Indian Oil Corporation each hold a 10 per cent stake.