Petronas has put its Prince Rupert, B.C., LNG project on hold. (Bazuki Muhammad/Reuters)

Petronas says it's delaying its proposed liquefied natural gas terminal near Prince Rupert, B.C.

The Malaysian energy giant says although it has resolved its concerns with the B.C. government, the conditions aren't right to proceed.

Petronas says the economics of the project don't work as costs remain high and oil prices have dropped below $70 US a barrel.

The total investment of $36 billion covers the LNG plant, shale fields in northeastern B.C. and a pipeline to connect the two.

Despite the delay, both the company and the B.C. government struck a positive tone, expressing optimism the project will eventually proceed.

Premier Christy Clark says the province's plans to build an LNG industry are still on schedule.