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

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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Elkhart Gas Station, located on Highway 97C about 60 kilometres west of Peachland, opened in November 2020. (Google maps)
The Okanagan Connector now has a gas station

The highway previously ran for over 117 kilometres without a place to fuel up

A laboratory technician holds a dose of a COVID-19 novel coronavirus vaccine candidate that’s ready for trial on monkeys at the National Primate Research Center of Thailand. (Mladen Antonov - AFP)
Interior Health reports 66 new COVID-19 infections

570 cases are active; 18 in hospital

The real estate market is brisk in the South Okanagan, with home prices increasing according to November, 2020 statistics. (Contributed)
House prices rise while supply is limited in South Okanagan

Real estate market active, according to November statistics from South Okanagan Real Estate Board

Send your letter to the editor via email to news@summerlandreview.com. Please included your first and last name, address, and phone number.
LETTER: Wear a mask for the benefit of all

If this virus latches onto one of your cells, it takes over the RNA and DNA and makes you sick

(Google Maps)
Osoyoos Credit Union staff member tests positive for COVID-19

The credit union made the announcement Dec. 1

An Enderby restaurant and pub was shut down Sunday afternoon, Nov. 29, 2020 as a precaution after a guest reportedly tested positive for COVID-19. (Howard Johnson photo)
North Okanagan pub reopens after COVID-19 scare

After a guest reportedly tested positive for the virus, staff test results came back negative

Alix Longland
Trauma resources ready for North Okanagan refugees

Family Resource Centre working with UBCO social work grad to reach out to local refugees

The Hughes’ Grinch was stolen from their front yard Wednesday, Dec. 1, 2020. The Santa suit the Grinch is wearing is 50 years old and has sentimental value. It was once worn by April Hughes’ dad. (Hughes photo)
Grinch stolen from Penticton home is ‘irreplaceable’

The Hughes have had a Christmas display for 25 years on Grandy Avenue in Penticton

Midway RCMP’s Cpl. Phil Peters spoke at Greenwood’s city council meeting Monday, Nov. 23. Photo: Laurie Tritschler
B.C. Mountie builds fire to warm suspect with hypothermia prior to rescue

Cpl. Phil Peters said the civilian helped police track, apprehend and eventually rescue the suspect

Premier John Horgan leaves the podium following his first press conference of the year as he comments on various questions from the media in the Press Gallery at B.C. Legislature in Victoria, B.C., on Monday, January 13, 2020. THE CANADIAN PRESS/Chad Hipolito
Revelstoke COVID-19 cluster linked to non-essential travel: Horgan

There have been 46 cases of COVID-19 in the community

Students at Lavington Elementary crammed a car full of non-perishables for those in the community facing food insecurity. Spearheaded by teacher January Peebles (left), the donations were picked up by Give LUCK founder Myrika Godard, who works to connect donors with donees in the North Okanagan. (Give LUCK photo)
Provincial health officer Dr. Bonnie Henry updates B.C.’s coronavirus situation at the legislature, Nov. 30, 2020. (B.C. government)
Hockey team brought COVID-19 back from Alberta, B.C. doctor says

Dr. Bonnie Henry pleads for out-of-province travel to stop

Most Read