Insight

Pacific NorthWest LNG: FID ready?

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PETRONAS' Pacific NorthWest LNG project faces multiple potential engineering and local community challenges in its execution.  But as it vies to be Canada's initial large-scale LNG development, it must first achieve final environmental authorisation from the federal government and reduce costs to improve its competitiveness. Changes to the LNG tax regime recently announced by Ottawa and the British Columbia government are helpful in this regard but the critical issue now is development costs.

Table of contents

    • No FID, yet
    • New capital rules for depreciation of LNG assets
      • Lower capital costs
      • Steel prices are down
    • An improving cost structure
    • Will Pacific NorthWest take FID in 2015?

Tables and charts

This report includes 5 images and tables including:

  • Chart 1. Depreciation profiles under 8% and 30% CCA
  • Chart 2 PNW LNG plant b/even economics
  • Chart 4. Comparison of PNW LNG economics with US Gulf Coast LNG price (Japan, DES) – pre-2014 tax changes
  • Chart 5. Comparison showing impact of tax changes and 15% lower costs
  • Pacific NorthWest LNG: FID ready?: Image 3

What's included

This report contains:

  • Document

    Pacific NorthWest LNG: FID ready?

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