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Petronas did Canada a favour. Just ask Australia

Op-ed piece by economist Jim Stanford (Harold Innis Industry Professor of Economics) published in The Globe and Mail about Malaysia's Petronas pulling out of its liquefied natural gas project in BC.

Aug 02, 2017

After years of waffling, Malaysia's state-owned Petronas finally pulled the plug last week on its Pacific Northwest LNG project. The company blamed the dismal economics facing global LNG: a glut of world supplies and stagnant demand have driven prices well below the cost of constructing and operating the enormous facilities required to process, liquefy, and ship the gas.

Of course, that didn't stop some from reprising familiar complaints about Canada's supposedly anti-business policy climate. High taxes (including carbon taxes), interminable environmental reviews and Indigenous land claims make it impossible to do business here, they say. Most ludicrous was the attempt to blame British Columbia's new NDP government for the debacle. It's amazing that precisely one week of leftist rule could do more damage to this massive but shaky business plan than years of unfavourable economics.

For more of this article, go to The Globe and Mail website.