Petronas Buys 25% Share of LNG Canada Megaproject
Malaysian state fossil Petronas has bought a 25% share in the C$40-billion LNG Canada liquefied natural gas megaproject in Kitimat, British Columbia, less than a year after walking away from its own $36-billion Pacific NorthWest LNG project on environmentally sensitive Lelu Island.
LNG Canada could eventually ship 26 million tons of LNG per year, Bloomberg reports.
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“Petronas is in Canada for the long term, and we are exploring a number of business opportunities that will allow us to increase our production and accelerate the monetization of our world-class resources in the North Montney,” said CEO Wan Zulkiflee Wan Ariffin. “LNG is just one of those opportunities.”
Royal Dutch Shell and its partners in the LNG Canada consortium had delayed their final investment decision twice due to a global oversupply of natural gas, Bloomberg states. But “buying into the Shell-led project will help Petronas revive that prospect of shipping Canadian gas overseas and may also bring financing and gas supplies to LNG Canada.”
The Canadian Press says the project would be expected to start with two LNG processing units, with potential for future expansion.