Malaysia’s Petronas threatening to abandon LNG project over new climate change rules

CALGARY • Malaysia’s Petronas is frustrated that Prime Minister Justin Trudeau’s climate-change priorities are introducing new uncertainty for its proposed $36 billion Pacific NorthWest LNG project in northern British Columbia and has threatened to walk away if it doesn’t get federal approval by March 31, according to a source close to the project.

The project, to be located on federal lands on Lelu Island near Prince Rupert, received a largely favourable assessment from the Canadian Environmental Assessment Agency (CEAA) last month, was greenlighted by the British Columbia government in November, 2014, and received conditional corporate support — or a final investment decision — from Malaysia’s state-owned company and its partners in June of last year.

Petronas's Silence on BC LNG Act Sends Disquieting Signal

As the British Columbia legislature passed its "historic" Liquefied Natural Gas Project Agreements Act on July 21 after a lively eight-day debate, the most important player for which the special summer session of Parliament was convened kept an aloof -- and worrying -- silence.

Petronas, the Malaysian state energy firm with a 62 per cent stake in a consortium proposing to build a US$36-billion LNG project near Prince Rupert, did not offer a public thank you or congratulatory statement to the B.C. government of Premier Christy Clark for its efforts and hard-earned legislative victory.

BC's Gas Export Hopes Face 'Scandal that Ate Malaysia'

The prime minister of Malaysia, who is central to British Columbia's liquefied natural gas development ambitions, is the subject of a major financial corruption scandal rocking his country.

Earlier this month The Wall Street Journal, citing documents from government probes, reported that investigators suspected that almost $700 million in cash had been wired through state agencies, banks, and companies linked to 1Malaysia Development Berhad (1MDB).

Corporate tax-protection act passes, paving way for B.C.’s first LNG project

What was supposed to be a short, celebratory legislative session for a multibillion-dollar liquefied natural gas deal eroded for Premier Christy Clark’s government amid a horrific child abuse case and a long-running scandal involving her government’s firing of eight health researchers.

But in the end, lawmakers wrapped up the legislative session late Tuesday by passing the Liquefied Natural Gas Project Agreements Act.

Nine LNG Questions for British Columbians to Ask Their Politicians

The British Columbia legislature has just ratified a long-term agreement to lower royalties and taxes for a $38-billion liquefied natural gas project proposed by Malaysia's state-owned oil company, Petronas.

Pacific Northwest LNG, a consortium that includes Petronas and Chinese refining giant Sinopec, intends to build an export terminal on Lelu Island near Prince Rupert. The Lax Kw'alaams have opposed the project as a threat to salmon and the Skeena River.

Just How Bad Is BC's LNG Deal with Petronas?

Last week, the B.C. government released the text of its Project Development Agreement with Pacific Northwest LNG (led by Malaysian state enterprise, Petronas), considered the front-runner in getting B.C. a liquefied natural gas export industry. The agreement goes to the B.C. legislature this week in order to convince Petronas to make a "final investment decision."

There are still other barriers to this project going forward, due to First Nations rights and the province's environmental assessment process. The project hit a major snag when the Lax Kw'alaams First Nation balked at Petronas' proposed site for its LNG terminal. Also, the Gitga'at First Nation has just launched a legal challenge for not being consulted in the development process.

Who Is BC's Big LNG Partner? A Petronas Primer

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.

Petrobras's Billion-Dollar Scandal: Behind The Chaos In Brazil's Biggest Company

The chief executive of Brazil's biggest company, Petrobras, as well as five members of the state-run oil giant's board of directors were forced to resign this week amid a major corruption scandal that has rocked the country for months.

Chief Executive Maria das Graça Foster's resignation follows revelations that the company lost up to $33 billion in 2014 due to corruption and financial inefficiency. The financial disaster forced Brazilian President Dilma Rousseff to dismiss Graça Foster despite their close friendship. On Friday, Petrobras' board of directors named Aldemir Bendine, currently head of Banco do Brasil, as the company's new chief executive.

Petronas to hire hundreds of skilled foreign workers for B.C. LNG project

A liquefied natural gas venture in British Columbia led by Malaysia’s Petronas anticipates having to hire hundreds of skilled foreign workers during construction, underlining the skills shortage in Canada and the challenges of recruiting labour to build energy megaprojects.

Skilled foreign workers will account for almost 40 per cent of the work force required to build the proposed Pacific NorthWest LNG terminal near Prince Rupert, according to regulatory filings. At the peak of construction, there could be roughly 2,460 Canadian workers and 1,540 foreigners at the terminal site on Lelu Island.

Energy giant rains on B.C. throne speech

VICTORIA - A major player in British Columbia's liquefied natural gas sweepstakes has rained on Premier Christy Clark's throne speech, which laid out the government's plans for the industry in the coming months.

Malaysian energy giant Petronas, which is planning a multibillion-dollar LNG export facility near Prince Rupert, B.C., chose the opening of the legislature Monday to issue a statement, saying it may delay development for a decade unless it can reach cost and environmental agreements with provincial and federal governments by month's end.

Petronas threatens to pull out of LNG project

CALGARY - B.C. Premier Christy Clark says a threat by Petronas to quit a proposed liquefied natural gas project is just part of negotiations over the province's tax take, but experts say the Malaysian firm's message should be cause for worry.

The Financial Times quotes Petronas chief executive Shamsul Abbas as saying he's ready to call off the $10-billion project to be built near Prince Rupert, B.C., amid a delayed regulatory approval process, plans by the provincial government to impose an LNG tax and a "lack of appropriate incentives."

Paradis says it's now up to China to explain deal to Canadians

Canada’s Industry Minister is remaining tight-lipped over the specific "net benefits" Canadians can expect in exchange for the sale of Alberta-based oil and gas company Nexen to a Chinese state-owned oil enterprise.

Prime Minister Stephen Harper announced Friday his government is giving the green light to the controversial $15.1-billion takeover of Calgary-based Nexen Inc. by China National Offshore Oil Co., but made it clear that such deals will only be allowed under "exceptional circumstances" in the future.

Nexen-CNOOC, Petronas Takeovers Approved: Alberta Politicians And Readers React

Prime Minister Stephen Harper's announcement of approving the foreign takeovers of Calgary-based Nexen Inc. and Progress Energy Resources Corp. received a strong reaction from politicians and readers in Alberta.

Alberta’s NDP Leader Brian Mason said that there are grave concerns about the direction of the oilsands as a result.

Ottawa favouring public opinion over rational thought

State-owned enterprises have been active participants in the global economy for decades. In fact, they drive 70 per cent of activity in the global energy sector.

Canada knows a thing or two about so-called SOEs. Not so very long ago we had Petro-Canada, Canadian National and Air Canada. We still have Canada Post, which acquired Purolator Courier to compete with UPS and FedEx. We own “Crown corporations,” such as Ridley Terminals (for which I used to be chairman), which fulfills no discernible public policy purpose other than to generate profits for their owners, the taxpayer.

Shock, foreboding in China over rejection of Progress, Petronas deal

Barely a month goes by without one trade delegation or another from Canada arriving in Beijing, courting Chinese buyers for everything from energy and minerals to Canadian beef and ice wine.

So the news late Friday – already the weekend in Beijing – that Canada had shot down the acquisition of Progress Energy by Malaysia’s state oil company Petronas had a particularly foreboding feel, three weeks ahead of a review deadline in the $15.1-billion bid by China’s CNOOC for Calgary-based oil sands producer Nexen Inc.

Progress CEO optimistic Petronas deal will go forward

CALGARY – Michael Culbert, CEO of Progress Energy Resources Corp., said Monday he has a “positive outlook” on his company’s takeover by Malaysia’s state-owned company, Petronas.

In an interview with the Financial Post, Mr. Culbert said representatives from both companies are on their way to Ottawa to meet with Industry Canada officials and are motivated to iron out any outstanding issues.

Stephen Harper sheds no light on why Ottawa spiked Petronas deal, promises clarity soon

OTTAWA — Prime Minister Stephen Harper says his Conservative government still intends to review and clarify Canada's standards for foreign investment.

But he offered little explanation for why Industry Minister Christian Paradis rejected a proposed $6-billion takeover offer of Progress Energy Resources by Malaysian state-owned oil company Petronas.

Market braces for Petronas fallout

Ottawa’s decision to spike the $6-billion takeover of Progress Energy Resources Corp. promises to ripple through stock markets Monday, hitting not only the natural gas company in question, but possibly others that investors believed could at some point yield fat takeover premiums.

The federal government said Friday that Petronas, a state-owned Malaysian concern, did not clear the “net benefit” test for its proposed takeover of Progress. Petronas offered a 90-per-cent premium to the Progress stock price prior to its original bid, but the deal needed the blessing from the Conservative government.

Mulcair Slams Feds On Handling Of Petronas Deal

NDP critics Peter Julian and Hélène Leblanc added their voices Monday to those objecting to the Harper government's "secretive handling" of foreign investment reviews.

Yesterday, NDP leader Thomas Mulcair denounced the federal government's lack of transparency in its decision to reject a $6-billion bid by Malaysia's state-owned oil company Petronas for Calgary-based Progress Energy Resources during a speech to party faithful in Ottawa.