Petronas Won’t Confirm or Deny LNG Canada Stake

Malaysian state-owned Petronas on May 4 neither confirmed nor denied media reports published earlier this week suggesting it had taken an interest in the Royal Dutch Shell-led LNG Canada project in Kitimat, BC.

“As a normal course of business, Petronas continues to look at all opportunities to monetise its world-class inventory of natural gas resources in North Montney, BC,” Petronas said in an email statement to NGW. “Petronas’ business commitment and long-term investment strategy in Canada continues via its subsidiary Progress Energy Canada.”

In February, Progress Energy Canada sold its oil and gas assets in Alberta’s Deep Basin, and said it would focus its efforts on the North Montney.

“Together with our parent company, Petronas, we have built our long-term strategy in Canada based on the commitment that we will operate as a best-in-class unconventional natural gas operator,” Progress Energy CEO Mark Fitzgerald said at the time. “This sale further supports our ability to consolidate our focus on the vast unconventional resource we have in the North Montney in northeast BC”

Petronas, which last year cancelled its own Pacific NorthWest LNG export project in BC, citing “market conditions”, has long been rumoured to be looking at other Canadian LNG opportunities, with the Chevron Canada-Woodside project, also in Kitimat, most often mentioned as a possible target.

But earlier this week, BC business publication Business in Vancouver quoted provincial energy minister Michelle Mungall as saying Petronas is “now investing in LNG Canada’s project.”

LNG Canada has also refused to comment, saying only that it does not, as a matter of policy, comment on commercial matters.