Petronas to acquire 25% equity in LNG Canada project
12 June 2018
Petronas is pleased to announce that its wholly-owned entity, the North Montney LNG Limited Partnership (“NMLLP”), has entered into a purchase and sales agreement for an equity position in the LNG Canada project in Kitimat, British Columbia, Canada.
Upon the completion of the transaction, which is subject to international regulatory approvals and the completion of other associated agreements, the composition of ownership in the project will be Petronas, (25%); Shell Canada Energy, a subsidiary of Royal Dutch Shell plc (“Shell”), (40%); PetroChina Canada Ltd. (15%); Diamond LNG Canada Ltd., a subsidiary of Mitsubishi Corporation, (15%); and Kogas Canada LNG Ltd. (5%). It is anticipated that the transaction will be concluded in the next few months.
The proposed project includes the design, construction and operation of a gas liquefaction plant and facilities for the storage and export of liquefied natural gas (LNG), including marine facilities. 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.
Having an equity position in this project will enhance Petronas’ business intent to develop its world-class natural gas resource in the North Montney, northeast British Columbia through its wholly-owned subsidiary, Progress Energy Canada Ltd.