Petronas' RM137bil Canadian LNG project to begin soon


Malaysia's iconic Petronas Twin Towers are seen in the background of the Malaysian oil and gas company Petronas logo at a petrol station in Kuala Lumpur. - AFP filepic

KUALA LUMPUR: The construction of Petroliam Nasional Bhd’s (Petronas) multi-billion-ringgit liquefied natural gas (LNG) export terminal in Canada is expected to start this September.

“We are awaiting the final environmental certificate. We are hoping it will come by this fall (September to December). All of the other prerequisites have been dealt with now,” said British Columbia Finance Minister Michael de Jong.

The final puzzle piece that remains for the US$36bil (RM137bil) project is the environmental certificate from Canada’s central government.

“Petronas and their partners are working through that exercise. We are optimistic that in the near future, that work will be completed,” he said yesterday.

The Petronas-led Pacific NorthWest LNG project in north-eastern British Columbia involves the construction of facilities to process and export natural gas to be produced by Progress Energy Canada Ltd.

The group hit a speed bump earlier when one of the First Nation communities rejected an offer of C$1bil (RM2.93bil), in return for supporting the LNG export terminal in northern British Columbia.

The group said the development would harm a fish habitat next to the project site.

“We have made very good progress finding solutions to the specific concerns. Environmental stewardship, sustainability, the salmon habitat, these are things that are very important to Canadians, British Columbians and the First Nation aboriginal people,” De Jong said.

He added that more than 28 First Nations had already signed agreements to participate and receive benefits from the development.

“This is a project that has distinguished itself by bringing aboriginal communities on board,” he said.

The project entails Pacific NorthWest LNG building an LNG facility on Lelu Island, in the District of Port Edward. The first phase of the project would consist of two liquefaction trains, two LNG storage tanks, marine infrastructure with two berths for LNG carriers, a material offloading facility as well as administration and auxiliary buildings.

The facility would liquefy and export natural gas produced by Progress Energy Canada for transport to Lelu Island by the Prince Rupert Gas Transmission project proposed to be built, owned and operated by TransCanada Pipelines Ltd.

The detailed feasibility studies for the project was completed in November 2012.

The minister was on a visit to Malaysia to confirm the passage of British Columbia’s legislation that allowed the ratification of the agreement between Petronas, its international partners and the British Columbia government.

Besides Petronas, Pacific NorthWest LNG is owned by China Petroleum & Chemical Corp (better known as Sinopec) (15%), Japan Petroleum Exploration Co Ltd (10%), Indian Oil Corp Ltd (10%) and Petroleum Brunei (3%), according to the project’s website.

Canada has the second-largest proven reserves of natural gas in the world, De Jong said. “But it has to this point been a resource that has been used exclusively in continental North America. Malaysian technology will be used to help us take that resource and in liquefied form make it available all around the world,” he said.

He added that the project would single-handedly take Canada’s trade relationship with Malaysia and elevate it dramatically in importance.

Last year’s trade between the two countries stood at C$3bil. Out of the Asean countries, De Jong said Malaysia was its fourth-biggest trade partner.

“The advent of this project will immediately elevate Malaysia to number two,” he said.

He believes that the project, especially due to its size, will become a catalyst for the movement of people, goods and investments between the two countries.

“Ten years from now, we will look back at this moment in our joint histories and say that this is the time where prosperity and our bilateral relationship went to the next level,” he said.

Get 20% OFF The Star Digital Access

Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
Business , Petronas , oil and gas , canada ,

Next In Business News

SNS Network scores record RM1.22bil contract for the supply of servers
CapitaLand Malaysia records higher net profit of RM44mil in 2Q
Wall St futures rise as US, Iran pause hostilities
OCBC Malaysia, CGC launch RM1.3bil guarantee facility to boost SME financing
Malaysia must build future-ready workforce to capitalise on Asia's economic rise
FBM KLCI mirrors upbeat regional performance
Bursa Malaysia to suspend trading in BHIC Securities on Aug 7
MyCEB secures 416 business events for 2026-2030 with RM3.98bil estimated economic impact
South Korea's Naver jumps 10% on Nvidia's US$1bil investment plan
AI to drive Asean+3 growth, 2026 forecast revised higher to 4.1% - AMRO

Others Also Read