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November 20-21, 2014

Petronas to spend US$20B developing Western Canada LNG export

Petronas expects to spend US$20 billion to develop its LNG export project in Canada, Reuters reported. The project aims to meet growing energy demand in Asia, a senior company official said. Known as Pacific NorthWest LNG, it will consist of two liquefaction trains of 6 million tonnes per annum (MTPA) by the end of 2018 or 2019, Arif Mahmood, vice president of corporate planning at Petronas told an industry conference. The US$20 billion investment will include about US$5 billion for a pipeline to supply gas. TransCanada will build the pipeline.

“There is space to build a third train and capacity could go up to 18 MTPA,” Mahmood said, referring to potential expansion of the project. Petronas bought the project’s joint venture partner, Progress Energy Resources Corp., in 2012, in a deal that was initially blocked by the Canadian government. Petronas has secured its first LNG buyer for the project after selling a 10 percent stake to Japan Petroleum Exploration Co. Discussions with other buyers are underway.

“What we’re looking for is actually potential partners where they will also be offtakers of the gas,” Mahmood said, adding that Petronas will own at least 50 percent of the project.

 


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