Natural gas minister Rich Coleman (left)

Coleman plays down Petronas LNG threat

Talks going well with Malaysian energy giant, B.C.'s tax not a deal-breaker for LNG development, minister Rich Coleman says

WHISTLER – B.C.’s minister for natural gas development is playing down a threat from the president of Malaysian energy giant Petronas to withdraw from its $10 billion project to export liquefied natural gas from a terminal near Prince Rupert.

Petronas CEO Shamsul Abbas was quoted in the international business paper Financial Times Thursday accusing Canada and B.C. of “uncertainty, delay and short vision” in its regulations, taxes and “lack of appropriate incentives” to invest.

B.C. minister Rich Coleman said Thursday he contacted Petronas when he saw the report. He said Abbas has expressed similar concerns before, but B.C. negotiators continue to work on terms for a master development agreement.

Coleman said company representatives assured him the province has met every deadline Petronas has asked for, and he and Premier Christy Clark are set to meet with Abbas when he visits Canada next week.

“We know that we are getting to a spot competitively, globally, because everybody’s told us that, but he’s representing the interests of Petronas as we go through this,” Coleman said. “We’re going to represent the interests of British Columbia, to make sure B.C. gets its share of this opportunity.”

The Malaysian state-owned company is leading a consortium that includes Chinese, Japanese, Indian and Brunei investors for a pipeline and LNG processing in northern B.C. Petronas paid $5 billion last year to take over Progress Energy Canada, which has major shale gas holdings in northeast B.C. and Alberta.

The B.C. government plans to pass legislation in October to establish a tax on LNG exports. Coleman said the provincial tax is a small part of the negotiations, which include B.C.’s air quality requirements and protection of fish habitat at the Lelu Island site on the North Coast.

Fisheries impact from construction of the port could cause Petronas to change its design, which would delay development, but the project is not at risk, Coleman said.

“I think the only risk to any project in B.C. and anywhere in the world is the price of natural gas,” Coleman said. “If you can’t get the return on your investment and capital from the price you can sell it for, you’re not making the final investment decision, but that’s always been the case.”

NDP leader John Horgan said Abbas’ comments sound like “negotiating in public,” but B.C. has been slow to pursue export of vast shale gas reserves that have been known for many years.

VIDEO: Premier Christy Clark calls Petronas’ threat a negotiation tactic

Just Posted

Greyhound cleared to end routes in northern B.C., Vancouver Island

Company says nine routes have dropped 30% in ridership in last five years

Houston athletes prepare for B.C. Winter Games

Eryn Czirfusz and U14 ringette team to represent Houston

BC BUDGET: New spaces a step to universal child care

Fees reduced for licensed daycare operators

BC BUDGET: NDP cracks down on speculators, hidden ownership

Foreign buyers’ tax extended to Fraser Valley, Okanagan, Vancouver Island

BC BUDGET: Payroll tax replaces medical premiums

Health spending to increase $1.5 billion for drugs, primary care teams

Therapy dogs make appearance at B.C. Games

The St. John’s Ambulance therapy dog program launches a pilot project at the 2018 Kamloops B.C. Winter Games

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Canucks fold 5-3 in first ever trip to Vegas

Daniel Sedin had two points as Canucks fall to the Golden Knights Friday night

That’s a wrap: B.C. Games results after Day 1

Vancouver-Coastal Zone 5 is in the lead for medals Friday at the Kamloops 2018 B.C. Winter Games

Sticking the landing at the B.C. Games

Gymnasts talk competition, B.C. Winter Games, and teamwork in Kamloops

$153M in federal cash to fund child care, education training in B.C.

Bilateral agreement will create 1,370 new infant and toddler spaces

A B.C. woman talks her life in the sex trade

A view into the life from one Kelowna prostitute and the issues it can cause for women

Twitter feed prays for — instead of preying on — B.C. MLAs

Non-partisan Christian group wants to support politicians through personalized prayer

Mills Memorial Hospital financing formula released

Regional taxpayers to pay $113.7 million for new facility.

Most Read