Petronas, Progress Energy and Pacific NorthWest LNG (PNW LNG) have signed transaction agreements whereby Indian Oil Corporation (IOC) will acquire a 10% interest in Progress Energy’s LNG-destined gas reserves in northeast British Columbia and in the proposed PacificNorthWest LNG export facility on Canada’s West Coast. As part of the transaction, IOC has also agreed to offtake 1.2 Mt/year of LNG, which represents 10% of the LNG facility’s production, for a minimum period of 20 years. This transaction builds upon the two previously announced transactions in 2013 that saw Japex acquire 10% and PetroleumBRUNEI acquire 3%. Following the closing of the IOC acquisition, Petronas will hold 77% of the integrated project and will continue to work with potential customers and partners to secure markets for LNG.
Pacific Northwest LNG will be built in Port Edwards (British Columbia) by 2018. The final investment decision is expected by the end of 2014 and targeting first LNG exports in late 2018. The competitive front-end engineering and design (FEED) phase is underway and PNW LNG is targeting the third quarter of 2014 for the receipt and evaluation of the engineering, procurement, construction and commissioning (EPCC) bids. The design is for two trains of approximately 6 Mt/year each with the option for a third train of the same size.
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