Progress Energy, Petronas secure first LNG buyer

CALGARY: Progress Energy Canada Ltd, Pacific NorthWest LNG Ltd and Petroliam Nasional Bhd (Petronas) have closed the previously announced transaction that saw Japex Montney Ltd, the Canadian subsidiary of Japan Petroleum Exploration Co Ltd (Japex), acquire a 10% interest in Progress Energy Canada’s natural gas assets in north-east British Columbia and in the proposed Pacific NorthWest LNG export facility on Canada’s west coast.

As part of the transaction, Japex has agreed to buy a 10% share of the liquefied natural gas (LNG) facility’s production for a minimum of 20 years for domestic use in Japan.