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CNOOC subsidiary considers BC LNG export terminal

LNG Industry,

China National Offshore Oil Corporation (CNOOC) announced that its subsidiary Nexen Energy ULC (Nexen) has entered into an exclusive agreement with the British Columbian government in Canada, to examine the possibility of constructing a liquefied natural gas (LNG) plant and export terminal at Grassy Point near Prince Rupert, British Columbia (BC).

The agreement gives Nexen and its joint venture partners INPEX Corporation and JGC Corporation the exclusive right to pursue access to Crown land at Grassy Point.

Li Fanrong, CEO of CNOOC, commented: “LNG export is the most attractive option for maximizing the value of our Canadian shale gas business. With robust financial capacity, a track record of efficient, innovative and responsible development and significant LNG expertise, Nexen and our joint venture partners are well positioned to pursue this opportunity”.

After assessing the suitability of the site at Grassy Point, the companies will need a variety of internal and external approvals before proceeding with the LNG development. The financial feasibility of the project will depend on acceptable cost estimates, fiscal terms and obtaining reasonably priced sales agreements.

“We have a long process ahead that includes a site viability review, a comprehensive environmental impact assessment and stakeholder consultation,” said Kevin Reinhart, CEO of Nexen. “Throughout the planning process, we’ll also examine the steps we can take to help the Province of British Columbia realize its goal of creating a strong and competitive LNG industry that creates jobs, strengthens pan-Pacific trading relationships and delivers lasting social and economic benefits.”

Adapted from press release by Katie Woodward

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