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Petronas could benefit from BG Group's LNG project delay: UBC professor

VANCOUVER (NEWS1130) –  British firm, BG Group‘s announcement it’s delaying work on a liquefied natural gas project near Prince Rupert could benefit another company that has yet to make a final decision on whether to move ahead with its project, according to an international business expert.

Ilan Vertinsky with UBC’s Sauder School of Business points out until you sign on, when you’re dealing with billions of dollars, there’s constant analysis going on.

He says the announcement may pressure the government to make the deal sweeter for Petronas, who doesn’t have to make a final investment decision until the end of the year. “All are interested in having projects, just with the right conditions.”

BG has said its delaying work because of how fast the US LNG industry is developing, and not because of the tax framework announced by the BC Government nearly two weeks ago.

It plans to make a decision after 2016.