Petronas reaches FID on Canada LNG


Petroliam Nasional Bhd (Petronas), together with its joint-venture (JV) participants, has taken a final investment decision (FID) on LNG Canada, a major liquefied natural gas (LNG) project in Kitimat, British Columbia, Canada.

In a statement yesterday, Petronas said it would hold a 25% participating interest in the project through its wholly owned entity, North Montney LNG Ltd Partnership (NMLLP).

Its JV participants Royal Dutch Shell plc holds 40% through its affiliate Shell Canada Energy; PetroChina Co Ltd, through its subsidiary PetroChina Canada Ltd (15%); Mitsubishi Corp, through its subsidiary Diamond LNG Canada Ltd (15%); and Korea Gas Corp, through its wholly owned subsidiary Kogas Canada LNG Ltd (5%).

The project is operated through LNG Canada Development Inc. Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin said the FID taken was a significant milestone for Petronas and for the energy industry in Canada.

Wan Zulkiflee said the LNG project, the first in Canada, would add value to the gas resources in the North Montney area and strengthened Petronas’ supply portfolio for LNG to the Asian markets.

Petronas said the LNG export facility, which would be built in Kitimat, included the design, construction and operation of a natural gas liquefaction plant, and facilities for the storage and export of LNG, as well as 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 annum with the potential to expand to four trains in the future,” it added. — Bernama