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Malaysia’s Petronas buys 25 percent stake in LNG Canada project

Shell will continue to be the biggest owner in LNG Canada, holding a 40 percent stake.

Reuters Staff: MAY 31, 2018

SINGAPORE (Reuters) – Malaysia’s state-owned oil and gas company Petroliam Nasional Bhd [PETR.UL] said on Thursday it is buying a 25 percent stake in a Canadian liquefied natural gas (LNG) export project, nearly a year after cancelling its own planned terminal.

The company, known as Petronas, will buy an equity stake in LNG Canada, an export project led by Royal Dutch Shell located in Kitimat, British Columbia, said Petronas in a statement. The purchase is expected to close in the next few months, the company said.

Petronas did not give a value for the acquisition.

Petronas’ purchase follows its decision in July to cancel its planned C$36 billion ($28 billion) Pacific NorthWest LNG project because of depressed fuel prices. [nL1N1KG1CB]

The C$40 billion LNG Canada project will consist of two LNG production facilities, known as trains, that are expected to export a combined 13 million tonnes per year of LNG. [nL2N1SM1S5]

Petronas is joining as Shell and its partners prepare for a final decision to go ahead with the project, which would be the first large-scale LNG plant constructed in several years.

Shell will continue to be the biggest owner in LNG Canada, holding a 40 percent stake. Other partners include PetroChina, Mitsubishi’s Diamond LNG and Korea Gas.

Reporting by Christian Schmollinger; Editing by Tom Hogue

SOURCE

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