Malaysian state oil firm Petroliam Nasional Bhd is considering selling its majority stake in a US$27 billion Canadian liquefied natural gas (LNG) plant, three people familiar with the matter said this week.
Petronas, as the company is known, is weighing options for the project as a more than 50 per cent slide in crude oil prices since the middle of 2014 has hit the group’s profits and prompted cuts to capital expenditure and jobs.
Amid the cost-cutting, the economics of the Canadian project – which took three years to get approval due to environment concerns – have been called into question as LNG prices have fallen more than 70 per cent in two years.
A. Ananthalakshmi and Oleg Vukmanovic – Financial Post – September 30, 2016.
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