Montney reserves create new LNG optimism for Pacific NorthWest

first_imgThis week’s $70 billion acquisition of BG Group Plc by Royal Dutch Shell isn’t affecting the timeline for Pacific NorthWest, the representative told the Post.Follow this link to read the entire Financial Post report. Petronas and its project partners had initially delayed a FID last December, saying they were not “satisfied that Canadian LNG, and our projects in particular, was viable,” according to the Post.That attitude changed in the past few months as the company spent time proving up natural gas reserves in the north Montney region. They say this turned up 17.9 trillion cubic feet in the basin – exceeding its target.Pacific NorthWest is now negotiating lower costs with TransCanada – the company responsible for building the Prince Rupert Gas Transmission project for the north Montney region.- Advertisement -The pipeline length had also recently been extended to 900 kilometres compared to its original 150 – with 100 km being offshore. This extension was made possible after consultation with First Nations, according to the Post.A Pacific NorthWest representative told the Post that the recently announced federal LNG tax break has “added to the certainty.”The project is still waiting for a decision from the National Energy Board on tolling for the pipeline, which they expect shortly, but say a permit from the Environmental Assessment Agency is taking “a lot longer than anybody anticipated.”Advertisementlast_img read more