Major international LNG giant Petronas of Malaysia has previously purchased Progress Energy for ~$6 billion, which has major natural gas upstream assets in NE BC's Montney basin. Petronas has also entered into a contractual arrangement with TransCanada Pipelines for a $6 billion natural gas pipeline from NE BC to Prince Rupert, the location of Petronas' proposed LNG facility.
Currently, the LNG facility and pipeline are in the BC Environmental Assessment Office stage with final certification expected by September, 2014. The Front End Engineering and Design has also been previously awarded to Bechtel/Samsung.
Ergo, a Final Investment Decision (FID) was expected in September, 2014 but after today's announcement that seems to be just a future formality. Today, Petronas announced that it will definitely be proceeding with the LNG facility (plus pipeline and upstream natural gas development) with a gargantuan capital cost of $36 billion!
Quote:
Harper Arrives at APEC Summit Greeted by $36-Billion Investment Pledge From Petronas
BRUCE CHEADLE
NUSA DUA, INDONESIA — The Canadian Press
Published Sunday, Oct. 06 2013, 9:32 AM EDT
Last updated Sunday, Oct. 06 2013, 11:12 AM EDT
Prime Minister Stephen Harper arrived in Bali for an Asia-Pacific leaders’ summit Sunday bearing what could be called a $36-billion vote of confidence from Malaysia’s state-owned oil and gas company.
Malaysian Prime Minister Mohd Najib sprung the “gargantuan” investment figure during a joint availability with Harper in Putrajaya, saying Malaysia’s state-owned oil and gas company Petronas has committed to construction of a liquid natural gas plant in British Columbia and the pipeline to feed it.
“I’m told that this is the largest direct foreign investment in Canada by any country,” Najib said, flanked by Harper following a formal welcoming ceremony at a sprawling new government precinct outside the Malaysian capital of Kuala Lumpur.
Najib called it a “significant landmark decision” by Petronas, which last year spent more than $5 billion buying Alberta-based Progress Energy Inc.
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