Canada Conditionally Approves US$27 Billion Liquid Natural Gas Project

Canadian Prime Minister Justin Trudeau on Tuesday approved a US$27 billion (C$36 billion) LNG project that would ship 19 million tons a year of frozen LNG from western Canada to Asian markets.

This project approval serves as a test for the Canadian government which is battling between meeting the rigorous environmental standards of Canadian communities and helping to boost the country’s struggling energy economy.

The approval comes with conditions, however, as Trudeau’s government set 190 provisions to the major project that include protecting the environment and wildlife.

The project was first proposed by oil and gas company Petronas and other partners back in 2013 and has been criticized for the carbon emissions it would cause as well as the impact the export terminal would have on a wild salmon habitat.

Decisions on the project still have to go through Pacific NorthWest LNG’s shareholders who will consider the economics of the project as international prices for LNG have decreased since the project’s first proposal in 2013.

Source:
Houston Chronicle
Reuters