CALGARY, April 29, 2013 /CNW/ - Progress Energy Canada Ltd., Pacific NorthWest LNG Ltd. and Petroliam Nasional Berhad (PETRONAS) have closed the previously announced transaction that saw JAPEX Montney Ltd., the Canadian subsidiary of Japan Petroleum Exploration Co. Ltd. ("JAPEX"), acquire a 10 percent interest in Progress Energy Canada's natural gas assets in northeast British Columbia and in the proposed Pacific NorthWest LNG export facility on Canada's West Coast near Prince Rupert, British Columbia. As part of the transaction, JAPEX has agreed to buy a 10 percent share of the liquefied natural gas (LNG) facility's production for a minimum of 20 years for domestic use in Japan.
"This JAPEX investment in upstream natural gas resources in British Columbia and the downstream LNG facility further solidifies the North Montney as a world-class natural gas asset, and it clearly defines British Columbia and Canada as attractive and competitive destinations for global investment," said Michael Culbert, President & CEO of Progress Energy Canada. "It also affirms the confidence in PETRONAS as a world class developer of LNG Projects. Progress has increased its development pace in northeastern British Columbia in 2013, building new capacity to supply Pacific NorthWest LNG with abundant Canadian natural gas for export beginning in late 2018. The LNG sale to JAPEX is the first of several LNG sale transactions that are being negotiated with LNG Buyers in Asia."
About Progress Energy Canada
Progress Energy Canada, a leader in Canadian natural gas development, is building upon its history of performance excellence in North America to pioneer new infrastructure for delivering LNG to Pacific Rim markets. Producing more than 300 million cubic feet equivalent of natural gas per day in northeast British Columbia and northwest Alberta, Progress is serving Canadian markets and ambitiously expanding productive capacity on its large Montney land holdings in preparation for the opening of new LNG markets in Asia. Progress is wholly owned by PETRONAS of Malaysia, a global leader in LNG and the principle owner of Vancouver-based Pacific NorthWest LNG Ltd. Progress and Pacific NorthWest LNG are helping craft a bright new future for Canada's energy exports.
About Pacific NorthWest LNG
Pacific NorthWest LNG is planning to build a world-scale LNG export facility on Canada's West Coast at Lelu Island near Prince Rupert, British Columbia. The proposed facility will comprise an initial development of 2 LNG trains of 6 mtpa each and a subsequent development of a third train of 6 mtpa. The proposed facility would liquefy and export natural gas produced by Progress Energy Canada in northeastern British Columbia. Pacific NorthWest LNG is committed to generating new economic and social benefits for the local community, British Columbia and Canada in an environmentally safe and sustainable manner. Pacific NorthWest LNG is principally owned by PETRONAS of Malaysia.
Bank of America Merrill Lynch acted as financial advisor and Norton Rose Calgary acted as legal advisor to PETRONAS in connection with the transaction.
SOURCE: Progress Energy Canada Ltd.
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