Progress Energy Canada, PETRONAS Close JAPEX Investment in Pacific NorthWest LNG

Progress Energy Canada, Pacific NorthWest LNG and PETRONAS have closed the previously announced transaction that saw JAPEX Montney Ltd., the Canadian subsidiary of Japan Petroleum Exploration, 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.”

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LNG World News Staff, April 29, 2013; Image: Pacific NorthWest LNG