Petronas unveils growth O&G plans in Canada after US$5.3b Progress takeover cleared

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has unveiled three investment components in Canada which would involve building a pipeline and facilities after it cleared the last obstacle to the US$5.3bil takeover of Progress Energy Resources Corp.

Petronas president and CEO, Tan Sri Shamsul Azhar Abbas said on Monday the three major Canadian investment components would see the creation of thousands of well-paid jobs.

He said the first component included the Pacific Northwest LNG, which would involve building a LNG export facility on Lelu Island in the District of Port Edward.

The second component was the continued upstream development of natural gas production in the Montney region of northeast British Columbia and northwest Alberta.

There would also be the eventual installation of a natural gas transmission pipeline to move natural gas from the production fields to the LNG export facility. The pipeline would be built by a third-party pipeline company.

"These components will create thousands of well-paid jobs during construction of the facility and pipeline, as well as permanent, ongoing operating jobs throughout our LNG business, from the Montney region to the West Coast," he added. Shamsul said Petronas' well-established and extensive network of LNG customers would add value to Canada's natural gas resources and provide a strategic alternative to the traditional North American natural gas market.

He said this would also generate substantial economic benefits to the local communities in terms of employment, increasing skill levels and other economic multiplier benefits.

Last Friday, the Canadian Ministry of Industry's decided to approve Petronas' acquisition of Progress Energy Resources Corp.

Petronas said the acquisition would help develop Canadian natural gas for the global liquefied natural gas export market.

To recap, Progress' shareholders approved the transaction on Aug 28, 2012.

"Petronas and Progress have now received all necessary regulatory approvals for Petronas' acquisitions of Progress and the transaction is scheduled to be completed on Dec 12, 2012," Petronas said.

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