Progress Energy, Japex Close Gas Deal

Progress Energy Canada Ltd., Pacific NorthWest LNG Ltd. and 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 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 near Prince Rupert, British Columbia.

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

Progress said in a statement that it has increased its development pace in northeastern British Columbia in 2013, building new capacity to supply Pacific NorthWest LNG with abundant Canadian natural gas for export beginning in late 2018.

The LNG sale to JAPEX is the first of several LNG sale transactions that are being negotiated with LNG buyers in Asia, Progress said.