Malaysia's Petronas to take 25% stake in Kitimat, B.C. LNG project
Move comes after Malaysian energy giant had previously abandoned a different BC LNG project
Malaysian state-owned energy company Petronas says one of its wholly-owned entities has signed an agreement for an equity position in the LNG Canada project in Kitimat, B.C.
Petronas — which did not divulge the investment amount in a news release early Thursday — says it expects the agreement to be completed in the next few months once regulatory approvals are obtained.
The announcement comes less than a year after Petronas and its partners scrapped a $36-billion megaproject in British Columbia.
A consortium led by Petronas announced in July 2017 that it would not proceed with the Pacific NorthWest LNG project near Port Edward, B.C., due to what it called an "extremely challenging environment" brought on by prolonged low prices.
In the new agreement announced Thursday, the Petronas-owned North Montney LNG Limited Partnership would hold a 25 per cent stake in the LNG Canada project.
Shell Canada Energy would hold 40 per cent, PetroChina Canada Ltd., would have a 15 per cent stake, Mitsubishi Corp., subsidiary Diamond LNG Canada Ltd., would also hold 15 per cent, and Kogas Canada LNG Ltd., would have the remaining five per cent.
Petronas says the proposed project includes the design, construction and operation of a gas liquefaction plant and facilities for the storage and export of liquefied natural gas, including marine facilities.
The plant will initially consist of two LNG processing units with an option to expand the project in the future.
"Petronas is pleased to be part of the LNG Canada project," said president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin.
"We are committed to deliver LNG and natural gas, the cleanest fossil fuel in the world, to the growing global energy market."