Petronas investing up to $16B in Canadian LNG export facility

TransCanada to build a pipeline to supply the two plants in the west.

June 11, 2013

KUALA LUMPUR, Malaysia — Malaysian national oil company Petronas expects to spend up to $16 billion to build a liquefied natural gas export facility in Western Canada.

Arif Mahmood, Petronas vice-president of corporate planning, says the company will invest between $9 billion and $11 billion to construct two LNG liquefaction plants.

Another $5 billion will be invested in a 750 kilometre-long pipeline, to be built by TransCanada Corp., to supply gas to the two plants, he said.

The Pacific Northwest LNG project, located on Lelu Island in the Port Edward district, will liquefy and export natural gas produced by Progress Energy Canada.

Both companies are owned by Petronas, which secured its first LNG buyer, Japan Petroleum Exploration Co.