Malaysia's state-owned Petroliam Nasional (Petronas) has agreed to acquire 25% stake in LNG Canada, located in Kitimat, British Columbia on the west coast of Canada, for undisclosed amount.
The LNG Canada involves construction of a LNG export facility in Kitimat. It will initially comprise two LNG processing units, also known as trains, each with the capacity to produce at least 6.5 million tons per annum (mtpa) of LNG annually.
The project will have an option to expand to four units/trains in the future.
Under the terms of the purchase and sales contract, Petronas’ wholly-owned entity North Montney LNG Limited Partnership (NMLLP) will purchase the stake in the LNG Canada project.
Upon completion of the transaction, LNG Canada will be 40% owned by Royal Dutch Shell subsidiary Shell Canada Energy, 25% owned by Petronas; 15% held by PetroChina Canada subsidiary PetroChina Kitimat LNG Partnership; 15% owned by Mitsubishi subsidiary Diamond LNG Canada; and 5% owned by Kogas Canada LNG.
Petronas president and CEO Tan Sri Wan Zulkiflee Wan Ariffin said: “As one of the world’s largest LNG producers, Petronas looks forward to adding value to this venture through our long-term expertise and experience across the LNG value chain.
“We are committed to deliver LNG and natural gas, the cleanest fossil fuel in the world, to the growing global energy market.
“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. LNG is just one of those opportunities.”
Recently, LNG Canada joint venture has selected the joint venture of JGC and Fluor as the engineering, procurement and construction contractor for the project.
Under the contract, JGC and Fluor will hire a majority of the thousands of workers required during the five-year construction phase of the export facility.
The proposed export facility will be equipped to liquefy surplus Canadian natural gas. The resulting product will be exported to help meet global energy demands.