British Columbia Premier Christy Clark and Tan Sri Dato’ Shamsul Azhar Abbas, Group CEO and President of PETRONAS today signed a Letter of Intent to work collaboratively to secure long-term investments in British Columbia’s Liquefied Natural Gas (LNG) industry.
“Securing this commitment from PETRONAS shows that our strategy for attracting investment to B.C. is working,” said Premier Clark. “Our goal is to be the most competitive jurisdiction in the world for LNG, and build a sustainable industry that creates 100,000 jobs, and opportunities for generations to come - and we’re gaining momentum every day.”
“It is vital for PETRONAS and its partners that the integrated project, comprised of Pacific NorthWest LNG Ltd. And Progress Energy Canada Ltd. remain on track to reach our final investment decision by the end of 2014 to meet energy demands of our Asian buyers. We have been engaging with the Government of British Columbia to ensure that the projects costs remain economically viable,” said Tan Sri Dato’ Shamsul Azhar Abbas, Group CEO and President of PETRONAS. “The signed Letter of Intent is a positive step for the project and reinforces our collaborative and productive relationship with the Government of British Columbia as we aim towards our final investment decision at the end of 2014.”
“We have an opportunity for growth here that comes once in a generation,” said Deputy Premier and Minister of Natural Gas Development Rich Coleman. “With our resources, a 50-year history of recovering natural gas and proximity to Asia, the potential for becoming a global leader in LNG development is within our reach. We are doing important groundwork by developing strong partnerships with industry and First Nations, as well as preparing our labour force, making it even more appealing to invest in this province.”
The Letter of Intent reflects the commitment by the Province and PETRONAS (on behalf of its affiliates Pacific Northwest LNG Ltd. and Progress Energy Canada Ltd.) to enter into negotiations regarding a possible Project Development Agreement to secure mutual interests.
The Province has requested that PETRONAS continue to work towards a final decision about investing in the development of a LNG facility in B.C.
Both parties have agreed to assign senior executives to prepare terms of reference for a Project Development Agreement by June 30, 2014, to be negotiated by Nov. 30, 2014.
PETRONAS - Malaysia’s national energy company - has submitted a proposal to build the Pacific Northwest LNG facility in Port Edward, representing an estimated $11 billion investment.
To read the Letter of Intent, visit: http://www.newsroom.gov.bc.ca/downloads/Letter%20of%20Intent.pdf
- The integrated project, consisting of Pacific NorthWest LNG Ltd. and Progress Energy Canada Ltd. are majority owned by PETRONAS, Malaysia’s national energy company. Incorporated in 1974, PETRONAS is now one of the world’s largest, fully integrated oil and gas companies.
- Pacific NorthWest LNG Ltd. and Progress Energy Canada Ltd. have secured four transaction agreements to date. These agreements have been reached with Japan Petroleum Exploration Company Ltd. (JAPEX), PetroleumBRUNEI, Indian Oil Corporation Ltd. and China Petrochemical Corporation (SINOPEC)
- There are 13 proposed LNG projects in B.C., nine of which already have been approved for export licences from the National Energy Board.
- If five of these proposed facilities move forward, the cumulative gross domestic product benefit to B.C. could total $1 trillion.
- LNG export operations in B.C. could create over 100,000 new jobs in the province and new revenues for government to support a debt-free future.
- At peak construction in 2018, the LNG sector will require 58,700 workers.
- The Province recently unveiled a comprehensive strategy - B.C.'s Skills for Jobs Blueprint - to help meet LNG workforce challenges and ensure that apprenticeships, education and training are more in line with labour market demands.
LNG 101: A Guide to British Columbia’s Liquefied Natural Gas Sector:
For an update on B.C.'s LNG strategy, visit: http://www.gov.bc.ca/com/attachments/LNGreport_update2013_web130207.pdf
British Columbia’s Liquefied Natural Gas Strategy: http://www.empr.gov.bc.ca/SiteCollectionDocuments/LNGreport_web_130627.pdf
For more information on B.C.’s Skills for Jobs Blueprint, visit:
More details about the Pacific Northwest LNG proposal can be found at:
Office of the Premier
Pacific NorthWest LNG
Ministry of Natural Gas Development