Petronas-Progress LNG Facility Moves Ahead

Petronas and Progress Energy Resources Corp. announced that their proposed LNG export facility, officially named Pacific Northwest LNG, is moving into the design phase.

The facility, which is based on Lelu Island in the District of Port Edward, will include two trains when initially constructed. Planning will include the ability to expand with the addition of a third train in the future. The export capacity of the facility would be 3.8 million tonnes per annum per train.

“If the proposed acquisition of Progress by Petronas, that is currently being reviewed by the federal government is approved, the throughput of natural gas at the LNG export facility is expected to increase by approximately 60 per cent to 6 million tonnes per annum per train which will also result in concurrent enhancements to the productivity and efficiency of related upstream activities,” Progress said in a statement.

A final investment decision for the project continues to be expected in late 2014, followed by the first LNG exports in 2018. The estimated investment in the LNG export facility is expected to be between $9 billion and $11 billion, depending on the final project scope.