Canadian natural gas development and LNG export investment plans moving
CALGARY, Dec. 9, 2012 /CNW/ - PETRONAS and Progress Energy Resources
Corp. (Progress) welcome the Canadian Minister of Industry's decision
to approve the acquisition of Progress by PETRONAS Carigali Canada Ltd.
(PETRONAS Canada), which will help develop Canadian natural gas for the
global liquefied natural gas (LNG) export market.
"This approval by the Canadian government marks a vital step in our
plans to develop a LNG export business and opens promising new business
opportunities for Progress, British Columbia and Canadian trade
expansion," said Michael Culbert, President and CEO, Progress.
"Canada has great potential in the global LNG market - a growing market
that's already worth more than $300 billion per year. While
international LNG trade is intensely competitive, new facilities such
as our Pacific Northwest LNG project are vital to building Canada's
market position," Culbert said.
PETRONAS Canada and Progress have now received all necessary regulatory
approvals and the acquisition is scheduled to be completed on December
12, 2012. The acquisition will enable PETRONAS to secure long-term
strategic gas resources and leverage on Progress' extensive experience
in unconventional resource development to further grow its
unconventional business. At the same time, PETRONAS will be bringing
LNG experience and expertise in developing LNG infrastructure in
Western Canada, thus further cementing its position as a major long
term global LNG player.
PETRONAS' well-established and extensive network of LNG customers will
add value to Canada's natural gas resources and provide a strategic
alternative to the traditional North American natural gas market. This
will also generate substantial economic benefits to the local
communities in terms of employment, increasing skill levels and other
economic multiplier benefits.
"Our growth plans include three major Canadian investment components:
Pacific Northwest LNG, which is the construction of a LNG export
facility on Lelu Island in the District of Port Edward, near Prince
Rupert; the continued upstream development of natural gas production in
the Montney region of northeast British Columbia and northwest Alberta;
and the eventual installation of a natural gas transmission pipeline,
built by a third-party pipeline company, to move natural gas from the
production fields to the LNG export facility. These components will
create thousands of well-paid jobs during construction of the facility
and pipeline, as well as permanent, ongoing operating jobs throughout
our LNG business, from the Montney region to the West Coast," said Tan
Sri Dato' Shamsul Azhar Abbas, President and CEO of PETRONAS.
The partners recently announced that the Pacific Northwest LNG project
is moving into the pre front-end engineering design (Pre-FEED) phase.
The Pre-FEED phase will be undertaken to provide certainty around
project scope and a further understanding of construction timelines,
costs and labour force requirements. The estimated investment in the
LNG export facility is expected to be between $9 billion and $11
billion, depending on the final project scope. The construction phase
would result in up to 3,500 direct jobs and the long-term operations of
the facility would result in 200 to 300 direct jobs. Overall, Pacific
Northwest LNG plus the upstream and midstream investments represent
significant revenue and royalties to the provincial and federal
governments, and the opportunity for significant economic benefits to
the local First Nations and communities. A final investment decision
for the project continues to be expected in late 2014, followed by the
first LNG exports in 2018.
Pacific Northwest LNG will be opening an office in Vancouver, British
Columbia, in early 2013 and will be growing its project team. More
information, including a project backgrounder, is available at www.pacificnorthwestlng.com.
PETRONAS is the national oil and gas company of Malaysia. Incorporated
in 1974 the company, ranked among the most profitable among the Fortune
Global 500 entities, is engaged in the oil, gas and petrochemicals
industries with strategic business assets and interests in more than 30
countries. It is one of the world's leading LNG companies and is fully
involved in every value chain of the LNG business, from liquefaction
and shipping to re-gasification and trading. Apart from its Malaysian
production facility, currently one of the world's largest, PETRONAS
also owns interests in LNG assets in Australia and Egypt.
Progress is a Canadian energy company focused on exploration,
development and production of large, unconventional natural gas
resources in northeast British Columbia and northwest Alberta. Progress
holds the largest acreage position in the Montney shale gas play.
Throughout its history, Progress has a solid track record of growing
reserves, production and the underlying value of the company for its
Advisory Regarding Forward-Looking Statements
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable securities
laws. The use of any of the words "expect", "anticipate", "continue",
"estimate", "objective", "ongoing", "may", "will", "project", "should",
"believe", "plans", "intends" and similar expressions are intended to
identify forward-looking information or statements. In particular,
forward looking statements in this press release include, but are not
limited to, the anticipated timing of the closing of the acquisition of
Progress by PETRONAS Canada; PETRONAS Canada's plans for Progress
following completion of the acquisition; plans regarding Progress'
Pacific Northwest LNG project, the continued development of the
Progress Montney assets and the installation of a transmission pipeline
and the benefits to be obtained therefrom, including: the pace of
project development; the impact of expansion on productivity and
upstream efficiencies; the benefits to be obtained by the provincial
and federal governments, local First Nations and communities and others
as a result of the project; the timing for the final investment
decision; the timing of anticipated project completion; plans to open a
project office in Vancouver and the timing thereof; plans to increase
the project team; estimated total project costs; and the number of jobs
created for project construction and long-term operations as a result
of Progress' planned LNG business.
The forward-looking statements and information are based on certain key
expectations and assumptions made by Progress and PETRONAS, including,
among other things, expectations and assumptions concerning prevailing
commodity prices and exchange rates, applicable credits, royalty rates
and tax laws; the performance of existing wells; the success obtained
in drilling new wells; the sufficiency of budgeted capital expenditures
in carrying out planned activities; receipt of all required regulatory
approvals; and the availability and cost of labour and services and
future operating costs. Although Progress believes that the
expectations and assumptions on which such forward looking statements
and information are based are reasonable, undue reliance should not be
placed on the forward looking statements and information because
Progress can give no assurance that they will prove to be correct.
Since forward-looking statements and information address future events
and conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to, the risk that the Pacific Northwest
LNG project is not completed on the terms described or at all; delays
or changes in plans with respect to the project; failure to receive all
required regulatory approvals; failure to realize the anticipated
benefits of the Pacific Northwest LNG project; and changes in
legislation, including but not limited to tax laws, royalties and
environmental regulations; the risk that the transaction between
Progress and PETRONAS may not close when planned or at all or on the
terms and conditions set forth in the arrangement agreement.
Readers are cautioned that the foregoing list of factors is not
exhaustive. Additional information on these and other factors that
could affect the operations or financial results of Progress are
included in reports on file with applicable securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com).
Management has included the above summary of assumptions and risks
related to forward-looking information provided in this press release
in order to provide security holders with a more complete perspective
on Progress' future operations in respect of the Pacific Northwest LNG
project and such information may not be appropriate for other purposes.
Progress' actual results, performance or achievement and the benefits
to be derived from the project could differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events
anticipated by the forward-looking statements will transpire or occur,
or if any of them do so, what benefits that Progress and others will
derive there from. Readers are cautioned that the foregoing lists of
factors are not exhaustive. These forward-looking statements are made
as of the date of this press release and Progress disclaims any intent
or obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or results or
otherwise, other than as required by applicable securities laws.
SOURCE: Progress Energy Resources Corp.
For further information:
Progress Energy Resources Corp.
Vice President, Marketing, Corporate and Government Relations
NATIONAL Public Relations