The southwest view of the proposed LNG Canada plant in Kitimat. (Submitted)

Petronas secures 25% of LNG Canada

The deal will allow Petronas to develop its natural gas resource in northeast B.C.

Malaysian oil and gas giant Petronas has become the holder of a 25 per cent stake in the LNG Canada project.

The deal makes Petronas the second-largest equity owner in the project, behind Shell with 40 per cent, the remainder held by PetroChina with 15 per cent, Mitsubishi Corporation with 15 per cent and Kogas Canada with 5 per cent.

“LNG Canada formally welcomes Petronas as our fifth Joint Venture Participant following a deal close this month,” said LNGC spokesperson Susannah Pierce. “You’ll continue to see LNG Canada as your day-to-day liaison with the community, First Nations and our stakeholders, so nothing changes in that regard.”

Petronas’ intention to buy into the project was announced in June, the deal subject to regulatory approvals and closing conditions. The closing conditions were removed earlier this month, paving the way for the deal to go ahead.

“Petronas shares our strong commitment to the community, First Nations and government, and brings decades of LNG experience in construction and operations to LNG Canada, which will benefit our project as we move closer to a Final Investment Decision,” said Pierce.

Petronas’ successful bid for the 25 per cent stake sees Shell reducing its share of the project from 50 to 40 per cent, PetroChina from 20 to 15 per cent and Kogas from 10 to 5 per cent. Mitsubishi Corp’s share remains the same at 15 per cent.

Announcing Petronas’ intention to buy into the project in June, Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin said having an equity position in LNG Canada would allow it to develop its natural gas resource in the North Montney, northeast B.C., through its subsidiary Progress Energy.

Background – Petronas signals intent to buy into LNG Canada

“Canada is Petronas’ second largest resource holder after Malaysia, with vast unconventional gas and oil resources in the North Montney. Petronas and its North Montney joint venture partners are one of the largest natural gas resource owners in Canada.”

This isn’t the first time ownership of equity in the project has changed – in 2014 Shell increased its share from 40 to 50 per cent after Mitsubishi and KOGAS reduced their ownership from 20 to 15 per cent. At the time PetroChina kept its ownership at 20 per cent.

Petronas’ intention to buy into LNG Canada followed Petronas and its partners’ July 2017 decision to cancel the $36-billion Pacific NorthWest LNG project they had planned to build on Lelu Island off Port Edward.

At the time Petronas and its partners cited changes in market conditions, specifically prolonged depressed prices and shifts in the energy industry made, as their reasons for cancelling the project.

Contact the newsroom

Just Posted

VIDEO: Saanich resident shocked when trespasser licks security camera, rummages through mail

‘I found the situation really bizarre,’ said the Gordon Head resident

BC Ferries crew member taken to hospital after getting struck by bow doors

Two sailings between Horseshoe Bay and Departure Bay were cancelled

Vancouver Island Society for Adaptive Snowsports volunteer recruitment session planned

The Vancouver Island Society for Adaptive Snowsports is a non-profit charitable society… Continue reading

Campbell River Search and Rescue to be called in to search for Kelly McLoed

If you come across a groundsearch team tomorrow, listen to them.

North Island candidates chime in on Indigenous rights

Should we adopt the U.N. Declaration on the Rights of Indigenous People into Canadian law?

ELECTION 2019: It’s so close, it could come down to who turns out to vote

Black Press Media’s polling analyst on the origins of predictive seat modelling in Canada

Jack’s Devils beat Quinn’s Canucks 1-0 in NHL brother battle

New Jersey youngster scores first career goal against Vancouver

Two charged after owner’s wild ride through Kamloops in his stolen truck

Crystal Rae Dorrington, 37, and Derrick Ronald Pearson, 32, facing multiple charges

Judge orders credit union’s bank records for Kelowna social worker facing theft allegations

The man is accused of negligence, breach of contract, fraud and a conspiracy with Interior Savings

Leaders pour it on with rallies, boosts for candidates as campaign reaches peak

The federal election campaign has reached a crescendo

Allegations of racism lead to ministry investigation at Vancouver private school

St. George’s School was contacted over what the school describes as ‘deeply offensive behaviour online’

Not a political question: Thunberg calls for climate action in Alberta

Edmonton police estimated the size of the crowd at about 4,000

Zantac, the over-the-counter heartburn drug, pulled in Canada, U.S.

Health Canada also investigates possible carcinogen in some ranitidine drugs

B.C. public safety minister says cannabis edibles not in stores til January

Mike Farnworth says he wants regional issues considered when it comes to licensing

Most Read