Malaysia’s PETRONAS expands natgas asset base in Canada

08 November 2013 14:17  [Source: ICIS news]

TORONTO (ICIS)--Malaysia’s energy major PETRONAS is expanding its natural gas asset base in Canada to supply its planned liquefied natural gas (LNG) export project in British Columbia province, it said on Friday.

PETRONAS’ Canadian affiliate, Progress Energy, said that it agreed to acquire 127,000 acres in British Columbia’s Montney gas region from Canadian energy firm Talisman in a Canadian dollar (C$) 1.5bn ($1.4bn) deal. 

The acquired assets produce about 11,000 bbl/day of oil equivalent, but production is expected to increase further in the fourth quarter of 2013.

"These natural gas interests are an attractive complement to our existing North Montney asset base in northeastern British Columbia and are among the largest remaining North Montney lands not dedicated to a potential LNG project,” said Progress CEO Michael Culbert.

“The location, resource potential and operational synergies of these assets make this an ideal fit that expands our British Columbia resource base and increases our land position to 1.2m acres," he added.

Canada’s chemical industry trade group, Chemistry Industry Association of Canada (CIAC), has said that the industry is not opposed to LNG exports.

($1 = C$1.05)

By: Stefan Baumgarten
+1 713 525 2653

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