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B.C. and Petronas sign letter of intent

LNG Industry,

British Columbia (B.C.) Premier Christy Clark and Tan Sri Dato’ Shamsul Azhar Abbas, Group CEO and President of Petronas yesterday signed a letter of intent to work together to secure long-term investments in B.C.’s LNG industry.

“Securing this commitment from Petronas shows that our strategy for attracting investment to B.C. is working,” said Premier Clark. “Our goal is to be the most competitive jurisdiction in the world for LNG, and build a sustainable industry that creates 100 000 jobs, and opportunities for generations to come – and we’re gaining momentum every day.”

“It is vital for Petronas and its partners that the integrated project, comprised of Pacific NorthWest LNG Ltd and Progress Energy Canada Ltd remain on track to reach our final investment decision (FID) by the end of 2014 to meet energy demands of our Asian buyers. We have been engaging with the government of B.C. to ensure that the projects’ costs remain economically viable,” said Tan Sri Dato’ Shamsul Azhar Abbas. “The signed letter of intent is a positive step for the project and reinforces our collaborative and productive relationship with the government of B.C. as we aim towards our FID at the end of 2014.”

"Once in a generation opportunity"

Deputy Premier and Minister of Natural Gas Development Rich Coleman said: “We have an opportunity for growth here that comes once in a generation. With our resources, a 50-year history of recovering natural gas and proximity to Asia, the potential for becoming a global leader in LNG development is within our reach. We are doing important groundwork by developing strong partnerships with industry and First Nations, as well as preparing our labour force, making it even more appealing to invest in this province.”

The letter of intent reflects the commitment by the Province and Petronas (on behalf of its affiliates Pacific Northwest LNG Ltd and Progress Energy Canada Ltd) to enter into negotiations regarding a possible Project Development Agreement to secure mutual interests.

The Province has requested that Petronas continue to work towards a final decision about investing in the development of a LNG facility in B.C.

Both parties have agreed to assign senior executives to prepare terms of reference for a Project Development Agreement by 30 June, 2014, to be negotiated by 30 November, 2014.

Petronas has submitted a proposal to build the Pacific Northwest LNG facility in Port Edward, representing an estimated CAN$ 11 billion investment.

Click here to read the letter of intent in full.


Adapted from press release by Ted Monroe

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