Malaysia's Petronas to spend $35 bln on Canadian LNG project

Reuters

KUALA LUMPUR, Oct 7 (Reuters) - Malaysia's state oil firmPetronas plans to spend $35 billion to develop shalegas assets in Canada and build a liquefied natural gas (LNG)export terminal linking the country to energy hungry Asianmarkets, company officials said.

The estimate is $15 billion higher than the figurepreviously announced, since it includes costs associated withdrilling wells in British Columbia and taking over Canadianexplorer Progress Energy Resources for $5 billion, they said.

Malaysian Prime Minister Najib Razak was quoted as saying innewspapers that the project, announced last year after Petronasbought Progress Energy, would make the Southeast Asian countrythe biggest foreign investor in Canada.

"There is a 30-year timeline for the $35 billioninvestment," Najib said after holding bilateral meetings withCanadian Prime Minister Stephen Harper on Sunday.

Petronas had previously said it would spend $20 billion tobuild two LNG trains, which super chill gas into liquid form, onthe West Coast. This includes a pipeline to be built byTransCanada Corp from the fields in the shale-richMontney region. The trains are expected to be ready by the endof 2018 or 2019.

A final investment decision on the entire project will betaken by the end of 2014, Petronas has said.

The firm is in talks to sell stakes in the entire project topotential LNG buyers and has finalised one such deal with JapanPetroleum Exploration Co.

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