Petroleum Brunei Picks Up Stake in Pacific NorthWest LNG

Petroleum Brunei has agreed to acquire three percent interest in Progress Energy Canada’s natural gas assets in northeast British Columbia and in the proposed Pacific NorthWest LNG export facility on Canada’s West Coast.

As part of the transaction, Petroleum Brunei has agreed to buy a three percent share of the liquefied natural gas (LNG) facility’s production for a minimum period of 20 years, a statement by Pacific NorthWest LNG said.

Earlier this year, Japan Petroleum Exploration picked up a 10-per-cent interest in the project.

Progress is wholly owned by Petronas of Malaysia, the principal owner of Vancouver-based Pacific NorthWest LNG Ltd.

After the latest transaction, Petronas’s stake in Pacific Northwest LNG will be reduced to 87 per cent from 90 per cent.

“This brings another strong partner and investor to our Canadian LNG business and is further evidence of Asia’s burgeoning interest in securing British Columbia natural gas. We are continuing to develop our world-class Montney reserves to supply Pacific Rim consumers and expand Canadian energy trade. We look forward to adding additional partners in 2014 – a vital year for confirming the economics of our energy export initiative and helping lead Canada into the global LNG market,” said Michael Culbert, President and CEO of Progress Energy Canada.

Pacific NorthWest LNG is planning to build an LNG export facility on Canada’s West Coast at Lelu Island near Prince Rupert, British Columbia. The proposed facility will comprise an initial development of two LNG trains of approximately 6 million tonnes per annum (MTPA) each and a subsequent development of a third train of approximately 6 MTPA. The proposed facility would liquefy and export natural gas produced by Progress Energy Canada in northeastern British Columbia.

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