CNOOC to Assess LNG Plant Development in British Colombia Through Nexen

CNOOC Limited announced Tuesday that its wholly-owned subsidiary Nexen Energy has entered into an exclusive agreement with the Government of British Columbia, Canada to examine the viability of constructing a liquefied natural gas (LNG) plant and export terminal at Grassy Point near Prince Rupert, British Columbia, Canada.

The agreement with the Government of British Columbia, represented by the Ministry of Forests, Lands and Natural Resource Operations, grants Nexen and its joint venture partners INPEX Corp and JGC Corp, the exclusive right to pursue long-term access to Crown land at Grassy Point.

“LNG export is the most attractive option for maximizing the value of our Canadian shale gas business,” said Li Fanrong, CEO of CNOOC Limited. “With robust financial capacity, a track record of efficient, innovative and responsible development and significant LNG expertise, Nexen and our joint venture partners are well positioned to pursue this opportunity.”

The decision to proceed with the development of the plant would depend on variety of internal and external approvals, CNOOC added.

“We have a long process ahead that includes a site viability review, a comprehensive environmental impact assessment and stakeholder consultation,” said Kevin Reinhart, CEO of Nexen.

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