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

COLUMN: Art Matters by Sarah Zimmerman

This Christmas, shop for local gifts

City of Terrace says it’s ready to tackle winter weather

A new snow plow was added to the city’s snow removal fleet this year

CN Rail workers strike in Terrace as part of national movement

Employees say long, unpredictable hours are a public safety concern

Skeena Voices | The top wheeler

Skater Chris Thomas was chosen as Team Canada’s head coach for the upcoming Roller Derby World Cup

Fashion Fridays: Holiday outfits on a budget

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

B.C.’s largest catholic archdiocese names 9 clergymen in sex abuse report; probes ongoing

Vancouver Archdioces presides over 443,000 parishoners in B.C.

Smudging in B.C. classroom did not affect Christian family’s faith, says school district lawyer

Lawyers make closing arguments in a Port Alberni case about the Indigenous cultural practice

Canadian Forces member charged with possessing magic mushrooms in Comox

Master Cpl. Joshua Alexander, with the 407 Maritime Patrol Squadron, facing two drug related charges

Most B.C. residents, including those hit by 2018 storms, not prepared for outages: report

Create an emergency kit, BC Hydro says, and report all outages or downed lines

Study finds microplastics in all remote Arctic beluga whales tested

Lead author Rhiannon Moore says she wasn’t expecting to see so many microplastics so far north

Services needed in B.C. for early-onset Alzheimer’s disease patients: doctor, advocates

More patients are being diagnosed with Alzheimer’s at an earlier age

65-million-year-old triceratops fossil arrives in Victoria

Dino Lab Inc. is excavating the fossilized remains of a Triceratops prosus

B.C. widow sues health authority after ‘untreatable’ superbug killed husband

New Public Agency Health report puts Canadian death toll at 5,400 in 2018

Most Read