Petronas could yet invest in BC LNG industry after scrapping Port Edward project in July
Last month Petronas announced that plans to construct a $36bn Liquefied Natural Gas (LNG) facility in Port Edward, British Columbia (BC) would be scrapped due to a change in market conditions.
However, the Malaysian energy giant may be set to renew its aspirations in the LNG market, with the company considering an investment into pipelines in British Columbia to monetise Canada’s gas assets, according to state news agency Bernama.
The pipeline would be used source natural gas from an area with as much as 22.3trn cubic feet of proven gas, something that would be done alongside partners in an investment move from Petronas.
“We are now looking at the possibility of working together with partners or parties to look at a pipeline that could be built to connect that area to the rest of Canadian market,” said Petronas’ upstream CEO Mohd Anuar Taib.
The Globe on Mail reported that the company is interested in securing a 15% stake in an LNG project in Canada led by Royal Dutch Shell, citing industry sources.
It also understands that Petronas is exploring the viability of using existing US pipelines to transport LNG to the Gulf Coast.