B.C. Premier Christy Clark has announced an agreement in principle with Pacific NorthWest LNG, owned in majority by Malaysia's Petronas, for a liquefied natural gas development on the province's northwest coast.

Clark said the LNG framework will result in stable, long-term revenue for B.C. and $36 billion in investment, including a proposal for an LNG facility near Prince Rupert.

"Today reflects the beginning of the company's final decision path toward an investment decision," Clark said Wednesday morning.

The memorandum of understanding outlines steps leading to a project development agreement with the company, according to the government.

It includes a long-term royalty agreement with the company that guarantees decades without tax or royalty increases, Clark told reporters.

Lelu Island, near Prince Rupert, B.C., is the proposed site of the Pacific Northwest LNG project, backed by the Malaysian energy company Petronas. (Robin Rowland/Canadian Press)

There are still a number of hurdles. The province is working on First Nations approvals and waiting for a Canadian Environmental Assessment to be completed, said Clark.

Also, Pacific NorthWest LNG needs to commit to financing for the deal.

Clark won the 2013 provincial election in part on the promise of fostering an LNG industry that would create tens of thousands of jobs and wipe out B.C.'s debt, but the government's plan has fallen behind schedule.

Petronas is behind one of the liquefied natural gas facilities proposed for B.C's northwest coast. It has government backing but has run into difficulties securing First Nations support.

Pacific NorthWest LNG, a majority of which is owned by Petronas, has proposed to build a pipeline and terminal on Lelu Island just south of Prince Rupert, B.C.

However, last week the Lax Kw'alaams band rejected an offer of more than $1 billion in exchange for its consent on the project.

CBC is unable to stream Clark's announcement live, as earlier planned, due to technical limitations.