PETRONAS to join LNG Canada project

Shell Canada Energy, PetroChina Kitimat LNG Partnership, Diamond LNG Canada Ltd. and Kogas Canada LNG Ltd. have announced that Petroliam Nasional Berhad (PETRONAS) will take an equity position in LNG Canada, located in Kitimat, British Columbia on the west coast of Canada.

The LNG Canada joint venture is proposing to build a LNG export facility in Kitimat, British Columbia, Canada, that would initially consist of two world-scale LNG processing units.The project would include an option to expand to four trains in the future.

As a result of this transaction, if approved and upon closing, ownership interests in LNG Canada would be Shell Canada Energy, a subsidiary of Royal Dutch Shell, (40%); PETRONAS (through NMLLP), (25%); PetroChina Kitimat LNG Partnership, a subsidiary of PetroChina Canada Ltd., (15%); Diamond LNG Canada Ltd., a subsidiary of Mitsubishi Corporation, (15%); and Kogas Canada LNG Ltd. (5%).

British Columbia is home to one of the largest and most accessible sources of natural gas in the world.

LNG Canada recently selected the joint venture of JGC Corporation and Fluor Corporation as the Engineering, Procurement and Construction (EPC) contractor for the project and is currently finalising materials in preparation for a final investment decision by joint venture participants.