‘We are still ex­plor­ing op­tions for Pa­cific North­West LNG project’

New Straits Times - - Business -

KUALA LUMPUR: Na­tional oil com­pany Petro­liam Na­sional Bhd (Petronas) has not made its fi­nal de­ci­sion on the Pa­cific North­West liq­ue­fied nat­u­ral gas (LNG) project in Canada as the com­pany is still ex­plor­ing all op­tions.

Pres­i­dent and chief ex­ec­u­tive of­fi­cer Datuk Wan Zulk­i­flee Wan Arif­fin said the com­pany was ex­plor­ing ways to make the pro­posed project com­pet­i­tive with other LNG pro­duc­ers in North Amer­ica.

“We will an­nounce the fi­nal in­vest­ment de­ci­sion when the time is ap­pro­pri­ate,” he told a press con­fer­ence at the 19th Asia Oil and Gas Con­fer­ence, here, yes­ter­day.

Wan Zulk­i­flee said Petronas’s re­sources in Canada were sig­nif­i­cant, with a proven re­serve of about 26 bil­lion cu­bic feet.

“We are de­ter­mined to mon­e­tise this re­serve at the right price and at the right time.

“The project team has been tasked to ex­plore all op­tions to de­velop the LNG plant that will be cost com­pet­i­tive com­pared with other pro­duc­ers in North Amer­ica,” he said.

Malaysia is the world’s third largest LNG ex­porter af­ter Qatar and Aus­tralia.

The com­pany tra­di­tion­ally ex­ports its LNG to cus­tomers in the Far East but is eye­ing opportunities in the Mid­dle East and South Asia.

“LNG busi­ness po­ten­tial in China is huge and Petronas con­tin­ues to view it as an im­por­tant mar­ket. Petronas cur­rently sup­plies to Shang­hai LNG.

“Be­sides China, our tra­di­tional mar­kets for LNG in­clude Ja­pan, South Korea and Tai­wan as well as emerg­ing mar­kets such as Bangladesh, Pak­istan and In­dia.

“Se­cur­ing lu­cra­tive mar­kets is al­ways part of our ob­jec­tives,” he added.

On global oil pro­duc­tion cut, Wan Zulk­i­flee said the com­pany re­mained com­mit­ted to its pledge of cut­ting 20,000 bar­rels per day and if there was an ex­ten­sion of the ar­range­ment, Petronas would con­tinue with the same amount of out­put cut. Zarina Zakariah

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