MONETISING RESOURCES
PETROLIAM Nasional Bhd is buying a 25 per cent stake in a proposed C$40 billion (RM123.77 billion) liquefied natural gas (LNG) project in Canada. It plans to add value to the venture through its expertise across the LNG value chain.
PETROLIAM Nasional Bhd (Petronas) is buying a 25 per cent stake in a proposed C$40 billion (RM123.77 billion) liquefied natural gas (LNG) project in British Columbia, Canada, led by Royal Dutch Shell Plc.
No stake sale value was disclosed, but based on the acquired 25 per cent, Petronas could be paying about C$10 billion.
The deal was expected to be completed in the next few months, said Petronas in a statement yesterday.
Shell will own the largest 40 per cent stake in the project while other shareholders are PetroChina Canada Ltd with a 15 per cent stake, Mitsubishi Corp’s subsidiary Diamond LNG Canada Ltd (15 per cent) and Kogas Canada LNG Ltd (five per cent).
The acquisition would be carried out through its whollyowned entity, the North Montney LNG Ltd Partnership, said Petronas.
President and chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said as one of the world’s largest LNG producers, Petronas was looking forward to add value to the venture through its longterm expertise and experience in the LNG value chain.
“Petronas is in Canada for the long term and we are exploring a number of business opportunities that would allow us to increase our production and accelerate the monetisation of our world-class resources in the North Montney. LNG is just one of those opportunities.
“We are committed to deliver LNG and natural gas, the cleanest fossil fuel in the world, to the growing global energy market,” he said.
The proposed project includes the design, construction and operation of a gas liquefaction plant and facilities for the storage and export of LNG, including marine facilities.
The plant would 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 Progress Energy Canada Ltd.
Petronas and its North Montney joint-venture partners are one of the largest natural gas resource owners in Canada with over 52 trillion cu ft of reserves and contingent resources.
LNG Canada plans to build an export facility to Asia in Kitimat near Prince Rupert that could eventually have a capacity of 26 million tonnes a year.