MOSCOW (MRC) -- Malaysia's state oil and gas company Petronas plans to invest USD20 billion in its liquefied natural gas project in West Canada, one of the biggest investments aimed at capitalizing on cheap North American gas, reported Hydrocarbonprocessing with reference to a senior company official.
The company is planning two LNG trains of 6 million tpy each under the Pacific NorthWest LNG project by the end of 2019, Anuar Ahmad, head of Petronas' gas and power business, said in an email to Dow Jones Newswires.
The export terminal project in British Columbia was acquired by Petronas last year as part of its USD5.2 billion purchase of Canada's Progress Energy Resources. It is just one of several energy companies building LNG export terminals in Canada and the US to create outlets for surplus gas that has resulted from shale-drilling technology unlocking massive new reserves.
Royal Dutch Shell is spearheading one LNG venture at Kitimat, some 200 kilometers from the Petronas one, working with several Asian partners, including Japan's Mitsubishi. Another LNG project is a 50-50 joint venture between Chevron and Apache, also at Kitimat.
TransCanada was picked by Progress Energy to build, own and operate a 5 billion Canadian dollar (USD5.1 billion) pipeline that would transport natural gas to the terminal.
The project is crucial for Petronas as well as Malaysia, which has the third-largest oil-and-gas reserves in the Asia-Pacific region, but is struggling to maintain its status as a net exporter of fossil fuels.
Petronas aims to make a final investment decision on the West Canada project by the end of 2014 and start commercial operations by the end of 2018.
The Malaysian company is in talks to sell stakes in the project, Mr. Anuar said, after upstream energy company Japan Petroleum Exploration agreed in March to buy a 10% stake. Petronas is also looking for potential partners to be offtakers of the gas, he added.
Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC