Petronas to invest US$ 35 billion in Canadian LNG project

Malaysian based company Petronas is set to go forward with plans to develop the US$ 35 billion Pacific NorthWest LNG project in British Columbia, Canada.

The Pacific NorthWest project has requested a license to export up to 19.68 million tpy for a total of 25 years, to begin in 2019. The plant will be supplied by natural gas from B.C.’s Progress Energy, which Petronas bought in 2012 for a total of US$ 5.1 billion. The LNG terminal will be located in Prince Rupert, B.C.

At a press conference yesterday, the Malasian Prime Minister, Najib Razak, who stood alongside Canadian Prime Minister Stephen Harper, reinforced loyalties between the two countries involved. ‘This is a very significant landmark decision by Petronas, done in the wake of our friendly relationship”, he said.Harper was equally upbeat in saying: “We view Petronas investments very positively, and all the indications I have is that Petronas is looking at further investments. The government of Canada is very excited by that possibility as are all those I’ve talked to in the energy sector.”

Petronas, through a variety of subsidiaries, holds a 90% stake in the Pacific Northwest Project, with the other 10% belonging to Japex. The cost of US$ 35 billion takes into account the purchase of Progress Energy, the construction of the LNG plant, the installation of pipelines, and drilling wells for the extraction of LNG.

President of Pacific NorthWest LNG, Greg Kist, said that shipments would commence by 2018.

Edited from various sources by Ted Monroe

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