After having abandoned the US$27bn Pacific NorthWest LNG project in July 2017 because of increasingly difficult market conditions, the Malaysian state-held company Petroliam Nasional Berhad (Petronas) is considering the acquisition of a 15% minority stake in the US$40bn LNG Canada project. The company is now seeking alternative ways to monetize and market its natural gas Canadian assets and connect their output to foreign markets.
Shell has a 50% interest in LNG Canada, ahead of PetroChina Co. Ltd. with a 20 % share, while Kogas and Mitsubishi have a 15% stake each. In July 2017, the partners decided to delay again the final investment decision (FID) on the project (originally planned for late 2016).
LNG Canada will consist of two LNG trains of 6 Mt/year each (up to 6.5 Mt/year) with an option to later double the liquefaction capacity to four trains. Commissioning was expected in 2022. The project will be allowed to export up to 38 bcm/year of LNG (maximum exports of 1,494 bcm of gas over the 40-year period) from the proposed gas liquefaction plant to be located near Kitimat, British Columbia, Canada. The project received approval from the Oil and Gas Commission (OGC) of British Columbia in early January 2016.
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