‘FID to build LNG facility in Canada a significant milestone for Petronas’

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) and four global partners, including Royal Dutch Shell Plc and PetroChina Co Ltd, have reached a final investment decision (FID) to build a liquefied natural gas (LNG) export facility in Kitimat, Canada.

Petronas president and chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said the FID was a significant milestone for Petronas and the energy industry in Canada.

“The decision is a testimony of the strong collaboration among our partners and stakeholders who share the same aspiration of delivering long-term value via LNG, in line with our commitment to sustainable and responsible development of resources.

“This is the first LNG project in Canada and will pave the way for us to add value to our world-class gas resources in the North Montney area and strengthen our supply portfolio for LNG to the Asian markets,” he said in a statement yesterday.

Petronas, through its whollyowned North Montney LNG Ltd Partnership, holds a 25 per cent stake in the project. Shell, through its affiliate Shell Canada Energy, will hold 40 per cent.

PetroChina, through subsidiary PetroChina Canada Ltd, and Mitsubishi Corp, through its subsidiary Diamond LNG Canada Ltd, will hold 15 per cent each while Korea Gas Corp, through its wholly-owned Kogas Canada LNG Ltd, will own the remaining five per cent.

The project is operated through LNG Canada Development Inc.

The LNG facility, which will be built in Kitimat, British Columbia, includes the design, construction and operation of a plant and facilities for the storage and export of LNG, including marine facilities.

LNG Canada will initially consist of two LNG liquefaction processing units referred to as “trains” for a total of 14 million tonnes per year, with the potential to expand to four trains in the future.

Petronas and the North Montney joint-venture partners are one of the largest natural gas resource owners in Canada with over 52 trillion cubic feet of reserves and contingent resources.