The southwest view of the proposed LNG Canada plant in Kitimat. (Submitted)

Petronas secures 25% of LNG Canada

The deal will allow Petronas to develop its natural gas resource in northeast B.C.

Malaysian oil and gas giant Petronas has become the holder of a 25 per cent stake in the LNG Canada project.

The deal makes Petronas the second-largest equity owner in the project, behind Shell with 40 per cent, the remainder held by PetroChina with 15 per cent, Mitsubishi Corporation with 15 per cent and Kogas Canada with 5 per cent.

“LNG Canada formally welcomes Petronas as our fifth Joint Venture Participant following a deal close this month,” said LNGC spokesperson Susannah Pierce. “You’ll continue to see LNG Canada as your day-to-day liaison with the community, First Nations and our stakeholders, so nothing changes in that regard.”

Petronas’ intention to buy into the project was announced in June, the deal subject to regulatory approvals and closing conditions. The closing conditions were removed earlier this month, paving the way for the deal to go ahead.

“Petronas shares our strong commitment to the community, First Nations and government, and brings decades of LNG experience in construction and operations to LNG Canada, which will benefit our project as we move closer to a Final Investment Decision,” said Pierce.

Petronas’ successful bid for the 25 per cent stake sees Shell reducing its share of the project from 50 to 40 per cent, PetroChina from 20 to 15 per cent and Kogas from 10 to 5 per cent. Mitsubishi Corp’s share remains the same at 15 per cent.

Announcing Petronas’ intention to buy into the project in June, Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin said having an equity position in LNG Canada would allow it to develop its natural gas resource in the North Montney, northeast B.C., through its subsidiary Progress Energy.

Background – Petronas signals intent to buy into LNG Canada

“Canada is Petronas’ second largest resource holder after Malaysia, with vast unconventional gas and oil resources in the North Montney. Petronas and its North Montney joint venture partners are one of the largest natural gas resource owners in Canada.”

This isn’t the first time ownership of equity in the project has changed – in 2014 Shell increased its share from 40 to 50 per cent after Mitsubishi and KOGAS reduced their ownership from 20 to 15 per cent. At the time PetroChina kept its ownership at 20 per cent.

Petronas’ intention to buy into LNG Canada followed Petronas and its partners’ July 2017 decision to cancel the $36-billion Pacific NorthWest LNG project they had planned to build on Lelu Island off Port Edward.

At the time Petronas and its partners cited changes in market conditions, specifically prolonged depressed prices and shifts in the energy industry made, as their reasons for cancelling the project.

Contact the newsroom

Just Posted

UPDATE: Dog poisoned on run near Kitchener

“She just dropped,” Stolz said. “Her back leg seized in mid-run and she collapsed.”

Police week includes dispute over dogs

Creston RCMP responded to 63 calls for service from April 16-22, including… Continue reading

The Nest offers a warm welcome

For Judy and Calvin Germann, retirement means slowing down, not stopping. Calvin,… Continue reading

Cannabis store offers sneak preview

With Town of Creston bylaws and approvals now in place, the opening… Continue reading

VIDEO: ‘Alarm bells’ raised by footage allegedly from B.C. pig farm, SPCA says

PETA released video Wednesday showing dead and injured piglets next to nursing piglets

‘B.C. cannot wait for action’: Top doctor urges province to decriminalize illicit drugs

Dr. Bonnie Henry says current approach in ‘war on drugs’ has criminalized and stigmatized drug users

Many teens don’t know they’re vaping nicotine, Health Canada finds

Canadian Tobacco, Alcohol and Drugs Survey finds youth unaware of nicotine product risk

B.C.’s largest Vaisakhi festival target of threatening Facebook post: Surrey RCMP

Police say they are investigating the posts on Facebook, after local MLA forwarded screenshots

Murder on B.C. property didn’t need to be disclosed before sale, court rules

Buyer had tried to break contract after learning a man with ties to crime had been murdered there

Tofino beckons Trudeau for quiet Easter vacation

Environmental group hopes latest Pacific Rim vacation inspires change in prime minister

B.C. man turned to dating site for pimp operation, court hears

In court the details of how Simon Rypiak lured 4 women into prostitution revealed

Should B.C. parents receive money if they make sure their kids are vaccinated?

New survey looks at public opinion around government’s role in forcing immunizations

Defence accuses officer of ‘incompetence’ in trial for B.C. man charged with daughters’ murders

Double murder trial for the Victoria father accused of killing his two young daughters continues

Most Read