Petronas in Talks with Sinopec to Sell Stake in Pacific NorthWest LNG, Canada

Petronas of Malaysia is reportedly in discussions with Sinopec of China to sell at least a 10 percent stake in the Pacific NorthWest LNG project in Canada.

The company plans to sell down its stake in the LNG export project to as low as 50 percent, as it seeks to share the cost of bringing cheap energy to Asia, Reuters informs.

Pacific NorthWest LNG recently applied to the National Energy Board for a license to export up to 19.68 million tonnes of LNG per year from its proposed LNG export facility in Port Edward, British Columbia.

The proposed facility represents an investment of $9 billion to $11 billion, and will create up to 3,500 direct jobs during construction.

Pacific NorthWest LNG will be supplied with natural gas sourced primarily from Progress Energy Canada’s assets in northeast British Columbia.

The export project is ultimately owned, through various subsidiaries, by PETRONAS with a 90 per cent interest in the project and JAPEX with the remaining 10 per cent interest.

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LNG World News Staff, July 25, 2013; Image: Pacific NorthWest LNG