KUALA LUMPUR (Oct 3): Petroliam Nasional Bhd's (Petronas) 25%-owned LNG Canada's C$40 billion (about RM129 billion) liquefied natural gas (LNG) project is the largest private sector investment in the country's history, according to a statement on Canada Prime Minister Justin Trudeau's website.

The statement on Tuesday said the project in Kitimat, British Columbia is expected to create 10,000 jobs at the height of construction, lead to billions of dollars in direct government revenues and include hundreds of millions of dollars in construction contracts for indigenous businesses.

Trudeau said in the statement: "Today's announcement by LNG Canada represents the single largest private sector investment project in Canadian history. It is a vote of confidence in a country that recognises the need to develop our energy in a way that takes the environment into account, and that works in meaningful partnership with indigenous communities."

According to the statement, the prime minister announced C$275 million in federal support, as well as a commitment that trade barriers will not get in the way of the generational project.

"The largest infrastructure project of its kind in Canada, it will include a natural gas liquefaction facility, a pipeline, and a marine terminal to export surplus Canadian natural gas to some of the world's fastest growing economies in Asia. Once built, it will have the lowest carbon intensity of any large-scale LNG facility in the world.

"The LNG Canada facility will be built in Kitimat, B.C. (British Columbia). Construction is expected to begin in 2018, with the terminal in service by 2024. At full capacity, the terminal will convert and export as much as 26 million tons of liquefied natural gas per year, primarily to Asia. This represents roughly 20% of overall gas production in Canada," the statement said.

Yesterday, Petronas confirmed the company and joint venture participants reached a final investment decision on their LNG Canada project to strengthen their LNG supply portfolio to Asian markets.

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

The Malaysian state-owned energy firm 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%. 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.