Malaysia’s Petronas to purchase equity stake in LNG Canada project
Malaysian state-owned energy company Petronas will take a 25-per-cent equity interest in LNG Canada. The Shell Canada-led project, with an estimated cost of C$40 billion including a natural gas pipeline, is considered a frontrunner among some 20 proposed West Coast LNG projects, with a final investment decision expected this year. In 2017, Petronas and its partners cancelled a C$36-billion Pacific NorthWest LNG project near Port Edward, B.C., citing an “extremely challenging environment” due to prolonged low LNG prices. The cost of this new Petronas buy-in was not disclosed. Last month, LNG Canada awarded Texas-based Fluor Corp., and JGC Corp., based in Japan, the contract for the engineering, procurement and construction of the LNG Canada export facility in Kitimat, conditional on a positive final investment decision.