Report: Petronas Might Sell Stake in Pacific NorthWest LNG
Petroliam Nasional Bhd, better known as Petronas, is considering selling its majority stake in the $27 billion Pacific NorthWest Liquefied Natural Gas (LNG) plant, three people familiar with the matter told Reuters. Petronas, however, "categorically denied" the Reuters story.
"Petronas reiterates that, together with the project partners, it will study the conditions that come with the approval and conduct a total review of the project prior to making a decision on the next steps forward," the company said in a statement.
The weakness in oil and other commodity prices that has persisted for more than two years has forced Petronas and other energy leaders to reconsider their investments in LNG projects.
The news comes just a few days after the Canadian federal government approved the Pacific NorthWest LNG project, albeit with stringent demands on safety and environmental compliance. The approval took more than three years to obtain. For more information, see September 29, 2016, article - Canada OKs Pacific NorthWest LNG Project, with Long List of Conditions.