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Petronas announced Thursday that its wholly-owned entity, the North Montney LNG Limited Partnership (NMLLP), has agreed to acquire a 25 percent stake in the LNG Canada project in Kitimat, British Columbia.
Upon the completion of the transaction, which is subject to international regulatory approvals and the completion of other associated agreements, Shell Canada Energy will hold a 40 percent interest, PetroChina Canada Ltd. will hold a 15 percent interest, as will Diamond LNG Canada Ltd., and Kogas Canada LNG Ltd. will hold the remaining 5 percent stake.
It is anticipated that the transaction will achieve completion in the next few months.
“Petronas is pleased to be part of the LNG Canada project. 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,” Petronas President and Group Chief Executive Officer, Tan Sri Wan Zulkiflee Wan Ariffin, said in a BOP Blow Out Preventer repair company gulf coast statement.
“We are committed to deliver LNG and natural gas, the cleanest fossil fuel in the world, to the growing global energy market,” he added.
The proposed project includes the design, construction and operation of a gas liquefaction plant and facilities for the storage and gulf coast oil rig export of liquefied natural gas, including marine facilities.
Commenting on Petronas’ decision to join the LNG Canada project, Prasanth Kakaraparthi, senior analyst at Wood Mackenzie, said it marked an “interesting” turn of events.
“With nearly 52 trillion cubic feet of reserves and contingent resources, Canada is the second largest resource holder in Petronas’ portfolio after Malaysia. Consequently, monetization through LNG is inevitable given the weak outlook for domestic prices,” Kakaraparthi said in a statement sent to Rigzone.
“Costs will be a major concern for the project. Shell has announced its intent to make a decision by end of this year. But before LNG Canada can take FID [final investment decision], it will need to lower costs and take advantage of the latest tax breaks announced by the BC government,” Kakaraparthi added.
