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Petronas’s threat doesn’t change Woodfibre’s plans, says proponent

Linde Engineering signs on to Howe Sound project
It's business as usual, says the backers of Woodfibre Natural Gas.

 

A Malaysian state-owned energy company’s threat to pull the plug on its liquefied natural gas (LNG) project in northern B.C. isn’t affecting a proposed export plant in Howe Sound, say Woodfibre Natural Gas proponents.

On Thursday, Sept. 25, Petronas’s chief executive Shamsul Abbas was reported to have told The Financial Times that he was ready to call off a $10-billion project on the north coast due to red tape and the provincial government’s plans to implement a LNG tax.

“Rather than ensuring the development of the LNG industry through appropriate incentives and assurance of legal and fiscal stability, the Canadian landscape of LNG development is now one of uncertainty, delay and short vision,” Abbas stated in the publication.

Woodfibre representatives are taking note of what’s happening in the marketplace and within government circles, however the latest heated words don’t change their plans, Woodfibre Natural Gas spokesperson Marian Ngo told The Squamish Chief.

“As a player in the game we are in support of taxes that allow for us to be competitive in the international marketplace,” she said. “Besides from that, that is basically where we are standing.”

Earlier this year provincial officials proposed a two-tier tax on income from liquefaction of natural gas at B.C. plants. B.C. Premier Christy Clark told media all government related LNG charges would be finalized by Nov. 30 — including taxes.

Woodfibre officials are keen on learning the outcome, Ngo said. But until then, its business as usual, she noted.

“Clearly we are going to be following this.”

The company recently signed Linde Engineering onto its team. The German-based corporation has been contracted to provide engineering and procurement services for the project.

Woodfibre officials have also announced their intentions to join the Society of International Gas Tanker and Terminal Operators (SIGTTO) if the $1.6 billion facility is approved. SIGTTO is an international organization through which all industry participants address common problems and derive criteria for best practices and standards, Ngo noted.

“Everyone has a vested interest in assuring that things run smoothly,” she said, noting a single LNG ship is valued at approximately $200 million.

Woodfibre Natural Gas is in the process of submitting details of its proposed LNG export facility to the Environmental Assessment Office in Victoria. If approved, the proposed plant seven kilometers southwest of Squamish, would export approximately 2.1 million tones of LNG per year. 

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