Canada regulator pauses review of Petronas LNG project again

VANCOUVER: Canada's environmental regulator has again paused its review of a Petronas-led liquefied natural gas export project in British Columbia, requesting further information from the state-owned Malaysian company on plans to mitigate damage to a salmon spawning habitat.

The latest delay comes as Pacific NorthWest LNG board of directors was set to meet in Canada on Thursday. A spokesman would not say if the meeting was related to a "conditional" final investment decision on the project, expected within weeks.

It is the third time the clock has been stopped on the review of the $11 billion terminal project, which is part of a broader $36 billion investment by the Petronas and its partners in Canadian natural gas.

A spokesman for the Canadian Environmental Assessment Agency (CEAA) said that the regulator sent a letter to the company on June 2, requesting additional 3D modeling information related to the project's impact on fish habitat near the terminal site.

"Although many aspects of the previous information request have been addressed, the 3D modeling work requires updating to increase certainty in the results," said Christian Vezeau in an email.

The project is opposed by some environmental groups and aboriginal communities, who say the development will harm a sensitive salmon habitat in Flora Bank, which is adjacent to the terminal site on Lelu Island, in Northern British Columbia.

Petroliam Nasional Bhd, which is known as Petronas, has made numerous changes its design to address local concerns and mitigate its impact on the spawning ground.

The CEAA also requested more information on the effect the project will have on traditional aboriginal fisheries and marine animals. It did not say when it expected the review to resume.

Late last month, Petronas signed a project development deal with British Columbia. Days later, Chief Executive Officer Wan Zulkiflee Wan Ariffin said the company would announce a "conditional" final investment decision in the coming weeks.

A subsequent decision to move ahead with construction will come once the environmental review and additional aboriginal consultation work is completed.

The Pacific NorthWest LNG project is one of more advanced of 19 proposed for British Columbia's coastline, as dozens of companies race to build the facilities needed to export cheap Canadian gas to energy hungry markets in Asia.

The project is a joint venture between operator Petronas, China Petroleum and Chemical Corp (Sinopec), Japan Petroleum Exploration Co (Japex), Indian Oil Corporation Ltd and PetroleumBrunei- Reuters