The Pacific NorthWest LNG (PNW LNG) pleased many LNG industry followers last Thursday, June 11th, when it announced that it would be moving forward with a positive final investment decision. Many leading industry experts champion the PNW LNG project and believe that this recent announcement is of particular significance because it will act as a provisional seal of approval for other LNG projects on the West Coast of Canada.
The PNW LNG project, led by Malaysia’s Petronas, is for a proposed natural gas liquefaction and export facility on Lelu Island in Northern B.C. The $36-billion PNW LNG project is expected to create new economic and social opportunities for the communities of Northern B.C. as well as for the rest of B.C. and Canada. PNW LNG’s positive final investment decision is very promising. It is still subject to two final conditions however, that the Government of Canada approves its environmental assessment of the project and that the Legislative Assembly of British Columbia approves of the Project Development Agreement.
“Pacific NorthWest LNG is poised to make a substantial investment that will benefit Canada for generations to come,” said Michael Culbert, President of PNW LNG in a statement.
Two industry experts expressed their opinions with regards to the announcement made last Thursday by PNW LNG in an article written by Lauren Krugel for The Canadian Press. ARC Financial vice-president Jackie Forrest said that she believes that PNW LNG’s positive final investment decision will open doors for the approval of other LNG projects in the area. She said, “The first project is often the most difficult one. Just establishing that we can get a project up and running and what it costs and potentially build some of the infrastructure — that will help others.” In the same article, Bill Gwozd, senior vice-president at consulting firm Solomon Associates, agreed with Jackie Forrest’s opinion. He said, “From an industry point of view, I think it would raise more than a glimmer of hope. It would raise a shining beacon”.
ROI Land Investments Ltd is also very enthusiastic about PNW LNG’s positive final investment decision. This recent development bodes well for the whole LNG industry and it may cause some of the other proposed LNG projects to soon follow suit. ROI Land Investments Ltd is planning to help with the growth and development of this region. They have already acquired approximately 250,000 square feet of prime residential land development in the town of Kitimat, B.C and they recently closed a $3,000,000 bond offering which they plan to use to acquire another 170,000 square feet of land in the Kitimat region. These lands will be used to construct a total of 384 apartment units and 9 townhouses in an effort to provide adequate housing for workers in the LNG industry.