Petronas: No final investment decision on Canadian LNG project yet

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas), which is exploring ways to be more cost competitive at its Pacific NorthWest liquefied natural gas (LNG) project in Canada, has not made a final investment decision (FID) on the project.

“We’ll announce the FID when the time is appropriate, when we’ve done all the things we need to do to secure the FID,” Petronas president and group CEO Datuk Wan Zulkiflee Wan Ariffin told reporters at the 19th Asia Oil & Gas Conference 2017 yesterday.

He said the group’s resources in Canada is very significant, with proven reserve of 26DCF today and it is determined to monetise this reserve at the right price and right time.

Asked whether it would consider floating LNG and collaborations with other LNG projects in Canada, he said all options remain open but did not elaborate on specific details.

On the possible extension of oil output cut announced by Saudi Arabia Minister of Energy, Industry & Mineral Resources Khalid Al-Falih, Wan Zulkiflee said Petronas is committed to the production cut.

“We’ve committed to 20,000 barrels per day cut and that’s our commitment. So if there is an extension of the arrangement, of course we are committed to continue with the same production cut,” he said.

Earlier at the CEO Strategic Dialogue, Wan Zulkiflee said he does not see renewable energy as a threat to the oil and gas industry for the next 20 years.

“Looking at our data, we don’t see a scenario where renewable energy would displace or be a threat to our business, within the next 20 years. But we do view it to be a business opportunity,” he said.

“All the data that is in front of us, suggests that in the next 20 years, core oil and gas will still be our main business. But we see opportunities in investing in renewables. You may know that we’ve got some very small solar power assets in the group. We have got a solar plant in Gebeng, Kuantan, and we are doing some research on the rooftop of Suria KLCC. These are some of the small exposures we have in terms of solar power,” he added.