BREAKING: Petronas Profit Plunges 96%, Will ‘Revisit’ B.C. Megaproject
The Malaysian state oil company Petronas will “review” its proposal to build a highly controversial natural gas liquefaction and export terminal on British Columbia’s north coast after the plunge in global oil prices almost wiped out its profit in the second quarter.
“Petronas will review its liquefied natural gas development in Canada after the government there finishes its own assessment of the project around September or October,” Bloomberg reports, citing a statement to reporters by Petroliam Nasional Bhd. CEO Wan Zulkiflee Wan Ariffin. “The company plans to revisit the cost, schedule, and market conditions for the project before making a final investment decision with its partners after delays in securing regulatory approvals.”
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Earlier this month, the Wall Street Journal reported the company may be considering shelving the $36-billion Pacific NorthWest project. Climate analysts have warned the British Columbia and Canadian governments that the plant’s completion is incompatible with national greenhouse gas emission reduction goals, and local First Nations have registered strong opposition to its likely effects on local ecosystems.
Petronas’ quarterly net income fell to $US86 million in the second three months of 2016 from $2.2 billion the year before. Wan Zulkiflee had said in February that the company would trim capital spending this year by as much as US$5 billion in response.