Friday 29 Mar 2024
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KUALA LUMPUR (Oct 2): Petroliam Nasional Bhd (Petronas) confirmed today the company and joint venture participants reached a final investment decision (FID) on their LNG Canada project in Kitimat, British Columbia, to strengthen their liquefied natural gas (LNG) supply portfolio to Asian markets.

In a statement today, Petronas said its wholly-owned entity the North Montney LNG Ltd Partnership owns 25% participating interest in the project.
Petronas said its joint venture participants are Royal Dutch Shell plc, PetroChina Co Ltd, Mitsubishi Corp and Korea Gas Corp.

Petronas said Royal Dutch Shell via affiliate Shell Canada Energy owns 40% of the project, while Korea Gas via wholly-owned subsidiary Kogas Canada LNG Ltd has 5%. According to Petronas, PetroChina via subsidiary PetroChina Canada Ltd and Mitsubishi via subsidiary Diamond LNG Canada Ltd own 15% each in the project. 

Petronas said the project is operated through LNG Canada Development Inc.

Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin said in the statement: "The final investment decision with our joint venture participants is a significant milestone for PETRONAS and for the energy industry in Canada. The decision is a testimony of the strong collaboration among our partners and stakeholders who share the same aspiration of delivering long-term value via LNG, in line with our commitment to sustainable and responsible development
of resources."

“This is the first LNG project in Canada and the project will pave the way for us to add value to our world-class gas resources in the North Montney area and strengthen our supply portfolio for LNG to the Asian markets,” Wan Zulkiflee said.

According to Petronas' statement, the LNG export facility includes the design, construction and operation of a natural gas liquefaction plant and facilities for the storage and export of LNG, including marine facilities. 

"LNG Canada will initially consist of two LNG liquefaction processing units referred to as “trains” for a total of approximately 14 million tonnes per annum, with the potential to expand to four trains in the future. PETRONAS and its North Montney joint venture partners are one of the largest natural gas resource owners in Canada, with over 52 Tcf of reserves and contingent resources," Petronas said.

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