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Canada set to make Petronas LNG decision as early as mid-summer

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The Canadian government expects to make a decision on environmental approvals for Petroliam Nasional Bhd's C$36 billion (S$38.6 billion) liquefied natural gas project on the nation's Pacific coast by mid- to late-summer.

[TOKYO] The Canadian government expects to make a decision on environmental approvals for Petroliam Nasional Bhd's C$36 billion (S$38.6 billion) liquefied natural gas project on the nation's Pacific coast by mid- to late-summer.

Petronas, as the Malaysian company is known, is expected to provide further information to regulators soon, completing its application for the Pacific NorthWest LNG development, James Carr, Canada's natural resources minister, said Monday in an interview in Kitakyushu, Japan.

"Very shortly after that, the clock begins to tick," he said. "The government of Canada has given its assurance that a decision will be made within 90 days of that moment."

While Canada seeks to catch up with global LNG competitors such as Australia and the US, its developers are struggling after the oil-market collapse brought down LNG prices and forced companies to cut spending on projects.

The Petronas development has been held up by opposition from an aboriginal group near the site of its proposed shipping terminal.

BLOOMBERG