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Petronas & JV partners reach final decision on LNG Canada

Syndicated News
Written by Syndicated News

KUALA LUMPUR, Oct 2 2018 : Petronas, together with its joint-venture (JV) participants, have taken a final investment decision (FID) on LNG Canada, a major liquefied natural gas (LNG) project in Kitimat, British Columbia, Canada.

In a statement today, Petronas said it would hold a 25 per cent participating interest in the project through its wholly-owned entity, North Montney LNG Ltd Partnership (NMLLP).

Its JV participants Royal Dutch Shell Plc holds 40 per cent through its affiliate Shell Canada Energy; PetroChina Company Ltd, through its subsidiary PetroChina Canada Ltd (15 per cent); Mitsubishi Corporation, through its subsidiary Diamond LNG Canada Ltd (15 per cent); and Korea Gas Corporation, through its wholly-owned subsidiary Kogas Canada LNG Ltd (five per cent).

The project is operated through LNG Canada Development Inc.

Petronas President and Group Chief Executive Officer Tan Sri Wan Zulkiflee Wan Ariffin said the FID taken was 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,” he said.

Wan Zulkiflee said the LNG project, the first in Canada, would add value to the gas resources in the North Montney area and strengthened Petronas’ supply portfolio for LNG to the Asian markets.

Petronas said the LNG export facility, which would be built in Kitimat, included the design, construction and operation of a natural gas liquefaction plant and facilities for the storage and export of LNG, as well as marine facilities.

“LNG Canada will initially consist of two LNG liquefaction processing units referred to as “trains”, for a total of 14 million tonnes per annum with the potential to expand to four trains in the future,” it added.

Petronas and its North Montney JV partners are one of the largest natural gas resource owners in Canada with over 52 trillion cubic feet of reserves and contingent resources. – Bernama

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