Petronas to Invest $16 bn in Canada LNG Project

Petronas will likely invest $16 billion to build a liquefied natural gas export facility and related infrastructure in Western Canada.

About $9 billion and $11 billion would be used to construct two LNG liquefaction plants near British Colombia’s west coast and another $5 billion will be invested in a 750 kilometre-long pipeline, Associated Press reported quoting Arif Mahmood, Petronas vice-president of corporate planning.

The project which is being called Pacific NorthWest LNG project, will liquefy and export natural gas produced in northeastern British Columbia by Progress Energy Canada. Petronas bought Calgary-based Progress last year in a $6-billion deal.

Earlier in the year, Japex acquired a 10 percent interest in Progress Energy Canada’s natural gas assets in northeast British Columbia and in the proposed Pacific NorthWest LNG export facility. The Japanese firm will also buy the LNG from the facility.