Following a leaked audit report published by the Vancouver Sun highlighting significant safety problems, state-owned Malaysian energy-giant Petronas claims it has started a program to address issues. In a release the company noted that a 2013 asset-integrity audit, initiated to improve best practices, included recommendations to enhance safety standards.
"We acknowledged the gaps identified in the report and we have executed a comprehensive program to resolve the issues and ensure the safety of our people, environment and our facilities," said Wee Yiaw Hin, the company’s executive vice-president.
According to the audit, the company has had problems with employee training and cited instances of severe corrosion that could compromise the structural integrity of offshore oil and gas facilities.
B.C. Opposition leader John Horgan told reporters that the details in a leaked internal audit were "jaw-dropping." The Green party’s Andrew Weaver said the "shocking" leak will likely prove fatal for the company’s B.C. project.
Pacific NorthWest LNG plans to build the LNG facility in the District of Port Edward, on land administered by the Prince Rupert Port Authority.
The first phase of the project would consist of two liquefaction trains, two LNG storage tanks, marine infrastructure with two berths for LNG carriers, a material offloading facility, as well as administration and auxiliary buildings.
The facility would liquefy and export natural gas produced by Progress Energy Canada Ltd. in Northeast B.C. for transport to Lelu Island by the Prince Rupert Gas Transmission project.
Project officials announced earlier this month they would give a positive final investment decision, subject to two conditions.
In July, B.C. lawmakers passed a project agreement which requires the province to compensate the proponent and partners under certain circumstances against adverse changes to the LNG Income Tax, the Natural Gas Tax Credit or the Carbon Tax.
The project received an Environmental Certificate from the provincial government in November 2014. The certificate included eight conditions, which Pacific NorthWest LNG has committed to fulfilling.
The Canadian Environmental Assessment Agency is currently reviewing the project’s environmental assessment application and is expected to make a decision on the matter later this year.
Construction of the project is estimated to take about four years, with commercial operations targeted to begin in 2019.
In response to the leaked report, Petronas stated that it ensures that the facilities it designs, builds and operates are in accordance with company standards and legal requirements.
"For the PNW project, the pipeline will be designed, constructed and operated by an experienced major pipeline company. The tender for the construction plant has attracted bids from the world’s top-ranked integrated LNG service contractors, including from Canada and North America," read a statement.
Recent Comments
comments for this post are closed