Petronas decision a blow to Canada’s biggest shale play

Analysts had been skeptical about the project's prospects given current low gas prices and constraints facing state-run Petronas, which has been cutting costs to deal with lower profits and cash flow.

CALGARY: Petronas’ decision to cancel its Pacific NorthWest LNG project is a blow to the growth outlook for Canada’s largest shale play, eliminating a potentially huge source of future gas demand.

Gas from the Montney shale play in western Canada would have supplied the C$36bil (US$28.7bil) project in northern British Columbia. The project, majority-owned by Petronas, would then have shipped 12 megatonnes per year of liquefied natural gas to Asia.