Petronas to Partner in LNG Canada Project

Petronas Malaysia - depositphotos

CBJ — Petronas says one of its wholly-owned entities has signed an agreement for an equity position in the LNG Canada project in Kitimat, B.C. for an undisclosed sum.

Petronas, a multi-billion dollar Malaysian state-owned energy company, expects the agreement to be finalized before the end of the summer once all of the necessary regulatory approvals are put in place.

The announcement comes less than a year after Petronas and its partners scrapped a $36-billion project in British Columbia.

If the deal is ultimately approved the Petronas-owned North Montney LNG Limited Partnership would hold a 25% stake in the LNG Canada project.

Shell Canada Energy would be the largest shareholder at 40%. PetroChina Canada Ltd., would have a 15% stake, Mitsubishi Corp., subsidiary Diamond LNG Canada Ltd., would also hold 15%, and Kogas Canada LNG Ltd., would have the remaining 5%.

@CanBizJournal

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