A federal review of the $12-billion Pacific NorthWest LNG facility in northwest B.C. has been granted a three-month extension.

It further delays an already-drawn out decision on a major energy transportation project meant to open up new markets for natural gas in Asia.

The extension was granted by federal Environment Minister Catherine McKenna at the request of the Canadian Environmental Assessment Agency which has continuing concerns about the project’s effect on fish habitat.

A key concern from First Nations, environmentalists, and area residents has been the potential harm the project could have on eelgrass beds on Flora Bank, adjacent to Lelu Island, the proposed location of the terminal. The eelgrass beds are considered prime habitat for juvenile salmon.

In a statement this weekend, the agency said it received new information recently from the company, which contains additional details about the project and changes to its construction schedule and methods. The agency said Pacific NorthWest LNG indicated that some key potential mitigation conditions suggested by the agency to avoid or reduce significant environmental harm to fish and marine mammals were not feasible.

This information must be reviewed, analyzed, and considered in the final environmental assessment report, the agency said in a news release.

“As a result, the agency has requested additional information from the proponent in order to determine whether the project is likely to cause significant adverse environmental effects. The information request pauses the legislated timeline, which will resume once the proponent has satisfied the information request.”

The agency said it recognizes the importance of timely decisions while ensuring a fair and thorough process that is grounded in science.

“This extension will ensure all available and relevant information and science is considered, including over 34,000 comments recently received from the public to allow for informed decision-making,” it said.

The delay is another blow to the project’s consortium led by Malaysian state-controlled Petronas.

Pacific NorthWest LNG responded to the delay with a statement noting the increasing length of the federal review and the fact this latest extension was announced just four days before a legislated deadline for a government decision.

Nevertheless, Pacific NorthWest LNG president Michael Culbert said in the statement the company will work to assess this latest information request and continue to work constructively with federal agencies through this “rigorous” process.

The delay is also a blow to Christy Clark’s B.C. Liberal government which has pinned an economic plan on creating a new liquefied natural gas export industry to create jobs and fill the province coffers with new tax revenues.

B.C. Natural Gas Development Minister Rich Coleman said in a statement that the federal review has been going on for close to 1,000 days.

“While work is required as a result of the Canadian Environmental Assessment Agency’s latest posting, we are confident that working together with the federal government and the company, any remaining questions can be fully resolved expeditiously,” Coleman said Sunday.

He said he believed fish and fish habitat can be protected through continuous monitoring.

The project, near Prince Rupert, has an estimated cost of $36 billion, if development to extract gas in northeast B.C. and a pipeline to the coast are included.