B.C. Premier Christy Clark has signed a letter of intent with Malaysia’s state-owned energy giant Petronas to develop and secure long-term investments in the province’s liquefied natural gas (LNG) industry.
“Securing this commitment from Petronas shows that our strategy for attracting investment to B.C. is working,” said Premier Clark. “Our goal is to be the most competitive jurisdiction in the world for LNG… we’re gaining momentum every day.”
The first step of the agreement was signed in Kuala Lumpur today during Clark’s week-long Asian trade mission. The potential development to build an LNG terminal and processing facility at Port Edward in Prince Rupert was first announced last year and hailed as the flagship of B.C.’s LNG ambitions.
The project alone would be an $11 billion investment by Petronas works towards B.C.’s goal of generating $1 trillion in additional cumulative GDP from now until 2046. 100,000 jobs could also be generated from LNG-related construction, with the number of workers peaking at 58,700 in 2018.
Petronas will continue to work towards a final decision about investing in the B.C. LNG development. Both the company and the provincial government will prepare a terms of reference for the project by the end of June 2014, to be negotiated by the end of November 2014.
“It is vital for Petronas and its partners that the integrated project… remain on track to reach our final investment decision by the end of 2014 to meet energy demands of our Asian buyers. We have been engaging with the Government of British Columbia to ensure that the projects costs remain economically viable,” said Tan Sri Dato’ Shamsul Azhar Abbas, Group CEO and President of PETRONAS. “The signed Letter of Intent is a positive step for the project and reinforces our collaborative and productive relationship with the Government of British Columbia as we aim towards our final investment decision at the end of 2014.”
“We have an opportunity for growth here that comes once in a generation,” said Deputy Premier and Minister of Natural Gas Development Rich Coleman. “With our resources, a 50-year history of recovering natural gas and proximity to Asia, the potential for becoming a global leader in LNG development is within our reach.”
Featured Image: LNG terminal via Shutterstock