Malaysia's Petronas Gas Bhd (PNAGF, 6033.KU) is lining up Asian energy players to help build a Canadian liquefied-natural-gas megaproject, but there is a catch. Before anyone joins the ownership team, the prospective partners must sign long-term contracts to buy LNG.
Malaysia
's
Petronas Gas Bhd (PNAGF, 6033.KU) is lining up Asian energy players to help
build a Canadian liquefied-natural-gas megaproject, but there is a catch.
Before anyone joins the ownership team, the prospective partners must sign
long-term contracts to buy LNG.
The state-owned energy giant is optimistic that it will find partners eager to
participate in the massive development planned by Petronas-led Pacific
NorthWest LNG LP. Petronas has a 90% stake in
Pacific
NorthWest
, while Japan Petroleum Exploration Co. (1662.TO)
holds a 10% interest.
A condition of becoming a co-owner is to agree to take delivery of LNG in
Asia
.
"When you look at our project, our partners will be fully integrated and
have a physical need for LNG,"
Pacific NorthWest
president Greg Kist said in an interview.
"All of our LNG volumes will be committed to partners who will buy their
proportion, and that creates an alignment of interests."
The multibillion-dollar plans include transporting natural gas in northeastern
British
Columbia
to remote
Lelu
Island
in
the northwest part of the province.
Pacific NorthWest
selected TransCanada Corp. (TRP, TRP.T) earlier
this year to design and build a pipeline stretching across 900 kilometres. That
C$5 billion pipeline, called the Prince Rupert Gas Transmission Project, would
carry natural gas to
Lelu
Island
,
which will be transformed into an C$11 billion LNG export terminal.
Tokyo-based Japex, which acquired its minority interest in
Pacific
NorthWest
earlier this year, also picked up a 10-per-cent
stake in the Montney natural-gas play in northeastern B.C. from Petronas-owned
Progress Energy Canada Ltd.
The Malaysian company bought Calgary-based Progress last year for C$5.2
billion.
Pacific NorthWest
's head office, which opened in March in
Vancouver
, now
has 25 employees. Thirty Canadian engineers are being hired, initially to work
in
England
with
their Malaysian counterparts before transferring to
Vancouver
.
"We don't have a base of LNG expertise in
Canada
, and
you have to begin to build that," Mr. Kist said.
"The hub of corporate activity as it relates to oil and gas drilling,
completion and technology will very much stay in
Calgary
, but
the LNG industry itself will congregate in
Vancouver
.
Vancouver
will
be the Canadian base because of the proximity to where the LNG facilities
ultimately will be, on the northwest B.C. coast."
Industry analysts say the Petronas-led venture is one of the leading contenders
among a dozen proposals to export B.C. LNG to energy-thirsty customers in
Asia
.
Mr. Kist said his project is well-positioned, but "there are lots of horses
in the race."
Pacific NorthWest
expects to receive a decision by the end of this
year on its application for an LNG export licence from the National Energy
Board. Mr. Kist said Petronas, Japex and whatever future partners there might
be will make a final investment decision in late 2014 on whether to proceed
with the LNG project.
Pacific NorthWest
estimates it will require 3,500 construction
workers at the peak of the project's development, while up to 300 permanent
employees would be needed, starting in early 2019, to run the export terminal
on
Lelu
Island
.
"In the meantime, we're in every way, shape and form continuing to move
forward," he said.
Mr. Kist said
Pacific NorthWest
is
ramping up its efforts to nurture good relations with communities near
Lelu
Island
. As
part of the process of securing regulatory approvals,
Pacific
NorthWest
and the B.C. Environmental Agency Office will be
co-hosts for information sessions in Port Edward on Tuesday and in
Prince
Rupert
on Wednesday.
Pacific NorthWest
employees have been meeting with First Nations,
notably the Lax Kw'alaams, Metlakatla, Gitxaala, Kitselas and Kitsumkalum. In
contrast to widespread opposition by First Nations to the Northern Gateway oil
pipeline proposal, native leaders have been open to the prospect of B.C. LNG
developments.
"There are very intense LNG negotiations ongoing with First Nations,"
Mr. Kist said.
Διαβάστε ακόμα
Παρ, 26 Ιουλίου 2024 - 16:04
Παρ, 26 Ιουλίου 2024 - 16:02
Τετ, 24 Ιουλίου 2024 - 15:10
Τετ, 24 Ιουλίου 2024 - 15:06
Τρι, 23 Ιουλίου 2024 - 16:51