 "Malaysia's Petronas buys 25% stake in Shell-led LNG project")
Malaysia’s Petroliam Nasional Bhd. agreed to take a 25 per cent stake in a proposed liquefied natural gas project in Canada led by Royal Dutch Shell Plc.
The Canadian unit of Shell will hold a 40 per cent stake, while subsidiaries of PetroChina. and Mitsubishi. will have a 15 percent share each, according to a statement Thursday from Petronas. A unit of Korea Gas. will hold 5 percent. The proposed C$40 billion ($31 billion) export facility at Kitimat near Prince Rupert -- North America’s closest port to Asia -- could eventually have capacity to ship 26 million tons a year of liquefied gas.
The agreement marks a turnaround by Petronas after it abandoned its own $27 billion LNG proposal in British Columbia last July after the project faced spiraling costs and staunch opposition from environmental and indigenous groups.
That decision left it without a plan to ship gas produced by its Progress Energy Canada unit to Asia as originally intended. “Petronas is in Canada for the long term and we are exploring a number of business opportunities that will allow us to increase our production and accelerate the monetisation of our world-class resources in the North Montney,” Petronas Chief Executive Officer Wan Zulkiflee Wan Ariffin said in the statement. “LNG is just one of those opportunities.”
The Canadian unit of Shell will hold a 40 per cent stake, while subsidiaries of PetroChina. and Mitsubishi. will have a 15 percent share each, according to a statement Thursday from Petronas. A unit of Korea Gas. will hold 5 percent. The proposed C$40 billion ($31 billion) export facility at Kitimat near Prince Rupert -- North America’s closest port to Asia -- could eventually have capacity to ship 26 million tons a year of liquefied gas.
The agreement marks a turnaround by Petronas after it abandoned its own $27 billion LNG proposal in British Columbia last July after the project faced spiraling costs and staunch opposition from environmental and indigenous groups.
That decision left it without a plan to ship gas produced by its Progress Energy Canada unit to Asia as originally intended. “Petronas is in Canada for the long term and we are exploring a number of business opportunities that will allow us to increase our production and accelerate the monetisation of our world-class resources in the North Montney,” Petronas Chief Executive Officer Wan Zulkiflee Wan Ariffin said in the statement. “LNG is just one of those opportunities.”
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