Indian Oil Corporation Ltd. has agreed to purchase a 10% interest in Progress Energy Canada’s natural gas reserves in northeast British Columbia and in the proposed Pacific NorthWest LNG export facility, Progress announced March 7.
Japex Montney Ltd. and PetroleumBrunei also have interests in the project (10% and 3%, respectively). On the completion of this transaction, Petroliam Nasional Berhad (Petronas) will own 77% of the reserves.
“Each of these major investments in British Columbia underscores the globally attractive and competitive opportunities for Canadian natural gas in the Pacific Rim,” said Progress Energy president and CEO Michael Culbert.
Greg Kist, president of Pacific NorthWest, said, “We are assembling an industry-leading project and our growing partner list adds momentum to building an exciting new energy export sector for Canada.”
The agreement will see Indian Oil offtake 1.2 million tons of liquefied natural gas (LNG) – or about 10% of the facility’s production – per year for at least 20 year.
