Canada will announce Petronas LNG project is approved in the hours ahead
A long-delayed and long-anticipated liquefied natural gas export facility in British Columbia will get government approval in the coming hours, Reuters reports.
The C$36 billion Pacific Northwest LNG project is a significant investment in Canada and could give the Canadian dollar a lift, but only if it goes ahead. Petronas hasn't made a final decision on whether it will proceed with the export terminal.
It would be the largest private-sector development in Canada's history.
Canada had a huge headstart in the natural gas export game but squandered it by repeatedly delaying approvals. In the interim years, the US decided to allow LNG exports and then went onto approve terminals. Australia is already exporting LNG.
The advantage for Canada is geographical as its closer to China and Japan plus has abundant supplies.
However with energy prices subdued, it's highly questionable if any of the early supporters will decide to break ground. At the same time, the government approval was largely expected so the CAD impact in the day ahead may be minimal.
I've ranted about Canada's incompetence in this industry for years. Something like 13 projects have been waiting forever for approval.
