Friday 29 Mar 2024
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KUALA LUMPUR (May 31): Petroliam Nasional Bhd (Petronas) through its wholly-owned unit the North Montney LNG Ltd Partnership (NMLLP) has proposed to acquire 25% equity in a liquefied natural gas project in Canada.

The other owners of the LNG Canada project, located in Kitimat, British Columbia, are Shell Canada Energy (40%); PetroChina Canada Ltd (15%); Diamond LNG Canada Ltd, a subsidiary of Mitsubishi Corporation (15%); and Korea Gas Corp unit, Kogas Canada LNG Ltd (5%).

In a statement today, Petronas said the transaction, which is subject to international regulatory approvals and the completion of other associated agreements, is expected to be completed in the next few months.

The national oil company did not mention the cost of its acquisition but according to a Bloomberg report, the total cost of the project is C$40 billion (US$31 billion).

Petronas said its participation in the project would enhance its business intent to develop its world-class natural gas resource in North Montney, northeast British Columbia, through its wholly-owned subsidiary, Progress Energy Canada Ltd.

Canada is Petronas' second largest resource holder after Malaysia, with vast unconventional gas and oil resources in North Montney. 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 is pleased to be part of the LNG Canada project," said Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin.

"As one of the world's largest LNG producers, Petronas looks forward to adding value to this venture through our long-term expertise and experience across the LNG value chain. We are committed to deliver LNG and natural gas, the cleanest fossil fuel in the world, to the growing global energy market," he added.

Wan Zulkiflee said Petronas is in Canada for the long term and it is exploring a number of business opportunities that will allow it to increase its production and accelerate the monetisation of its resources in North Montney.

Petronas said the LNG Canada project includes the design, construction and operation of a gas liquefaction plant and facilities for the storage and export of LNG, including marine facilities.

It added that the plant will initially consist of two world-scale LNG processing units referred to as "trains", with an option to expand the project in the future to four trains.

 

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