Project Moving into the Pre-FEED Phase
CALGARY, Dec. 4, 2012 /CNW/ - PETRONAS Carigali Canada Ltd. (PETRONAS)
and Progress Energy Resources Corp. (Progress) today announced that
their proposed LNG export facility is moving into the next phase of
engineering. The project's detailed feasibility study for a LNG export
facility on Lelu Island in the District of Port Edward has been
successfully completed and the 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
"We are excited to have completed the Detailed Feasibility Study phase
and are now moving into the next phase of our engineering work, which
will include the submission of our project description to Canadian
regulators in early 2013," said Michael Culbert, President and CEO,
Progress. "In addition, we are pleased to have officially named our
project Pacific Northwest LNG and will continue to move the project
forward at an aggressive pace."
The project will include two trains, or liquefaction plants, when
initially constructed. Planning will include the ability to expand with
the addition of a third train in the future. The LNG throughput is
currently designed for about 3.8 million tonnes per annum per train
based on the LNG Export Joint Venture that was announced between the
two companies in 2011.
If the proposed acquisition of Progress by PETRONAS, that is currently
being reviewed by the federal government is approved, the throughput of
natural gas at the LNG export facility is expected to increase by
approximately 60 per cent to 6 million tonnes per annum per train which
will also result in concurrent enhancements to the productivity and
efficiency of related upstream activities.
Overall, Pacific Northwest LNG represents significant revenue and
royalties to the provincial and federal governments, and the
opportunity for 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 its Vancouver, British Columbia
office in early 2013 and will be growing its project team.
If Pacific Northwest LNG proceeds, 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.
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, plans regarding Progress' Pacific Northwest LNG project and
the benefits to be obtained therefrom, including: the pace of project
development; the number of liquefaction plants to be included in the
project; anticipated capacity levels; anticipated increases in capacity
levels as a result of the completion of the announced transaction
between Progress and PETRONAS; 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
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.
President & CEO
NATIONAL Public Relations