PETRONAS, partner advance on planned Canada LNG export project

04 December 2012 16:05  [Source: ICIS news]

TORONTO (ICIS)--Malaysia’s state energy and petrochemicals firm PETRONAS and Canada’s natural gas firm Progress Energy are moving forward with plans for a liquefied natural gas (LNG) export project on Canada’s west coast, they said on Tuesday.

PETRONAS and Progress said the project was advancing to its pre front-end engineering design (Pre-FEED) phase, following successful completion of a detailed feasibility study. The companies had announced plans for their Pacific Northwest LNG project last year.

If realised, the facility will be built on Lelu Island near Port Edward on the British Columbia coast.

The project’s LNG throughput is currently designed for about 3.8m tonnes/year of LNG. It will include two liquefaction plants, with the possible addition of a third plant at a later stage.

If Pacific Northwest LNG proceeds, the estimated investment sum is expected to be up to $11bn (€8.5bn), depending on the final project scope. A final investment decision is expected by late 2014, with LNG exports to begin in 2018.

However, the companies added that the project’s final throughput capacity and investment sum will depend on the Canadian government's approval of the planned takeover of Progress by PETRONAS. Canada has deferred a decision on that deal, which was first proposed in June, several times.

($1 = €0.77)

By: Stefan Baumgarten
+1 713 525 2653

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