CALGARY, Dec. 8, 2013 /PRNewswire/ - Progress Energy Canada Ltd., Pacific NorthWest LNG Ltd. and Petroliam Nasional Berhad (PETRONAS) have signed transaction agreements whereby PetroleumBRUNEI, through its affiliates, will acquire a 3 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, in the District of Port Edward. As part of the transaction, PetroleumBRUNEI has agreed to buy a 3 percent share of the liquefied natural gas (LNG) facility's production for a minimum period of 20 years.
The agreement builds upon the previously announced 10 percent partnership with JAPEX Montney Ltd announced in April, 2013.
"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 & CEO of Progress Energy Canada.
"We are pleased to welcome PetroleumBRUNEI as another important partner in our proposed LNG facility," said Greg Kist, President of Pacific NorthWest LNG. "British Columbia's abundance of natural gas, strategic location and proximity to Asian markets makes our LNG project attractive for international investment."
About Progress Energy Canada
Progress Energy Canada, a leader in Canadian natural gas development, is building upon its history of performance excellence in North America to pioneer new infrastructure for delivering LNG to Pacific Rim markets. Producing more than 350 million cubic feet equivalent of natural gas per day in northeast British Columbia and northwest Alberta, Progress is serving Canadian markets and ambitiously expanding productive capacity on its large Montney land holdings in preparation for the opening of new LNG markets in Asia. Progress is wholly owned by PETRONAS of Malaysia, a global leader in LNG and the principal owner of Vancouver-based Pacific NorthWest LNG Ltd. Progress and Pacific NorthWest LNG are helping craft a bright new future for Canada's energy exports.
About Pacific NorthWest LNG
Pacific NorthWest LNG is planning to build a world-scale 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. Pacific NorthWest LNG is committed to generating new economic and social benefits for the local community and First Nations, British Columbia and Canada in an environmentally safe and sustainable manner. Pacific NorthWest LNG is principally owned by PETRONAS of Malaysia.
Bank of America Merrill Lynch acted as financial advisor and Norton Rose Calgary acted as legal advisor to PETRONAS in connection with the transaction.
SOURCE Progress Energy Canada Ltd.