Leading Malaysian oil and gas company Petronas has announced that it has agreed to acquire a 25% stake in the LNG Canada Kitimat project, marking a return to the LNG industry in Canada for the energy giant.
The investment from Petronas comes as the joint venture, led by Royal Dutch Shell, announced in March that it would commence construction on the project later this year, following previous delays in 2016.
Figures of the deal were not revealed, however, the project itself is set to cost approximately CAD$40bn in total.
“As one of the world’s largest LNG producers, PETRONAS looks forward to adding value to this venture through our long-term expertise and experience across the LNG value chain,” said Petronas President and CEO Tan Sri Wan Zulkiflee Wan Ariffin.
“We are committed to deliver LNG and natural gas, the cleanest fossil fuel in the world, to the growing global energy market.”
The purchase of the stake comes after Petronas abandoned its own $36bn LNG project in Port Edward, British Columbia last summer.
Further, the President CEO has stated that the company will continue to explore other options for investment in Canada moving forward:
“Petronas is in Canada for the long-term and we are exploring a number of business opportunities that will allow us to increase our production and accelerate the monetisation of our world-class resources in the North Montney. LNG is just one of those opportunities.”