Japex to buy into west coast LNG development

The Japan Petroleum Exploration Company (Japex) will buy a 10 per cent stake in a Petronas liquefied natural gas (LNG) development project in British Columbia. Petronas, the Malaysia-based oil and gas company, will hold the remaining 90 per cent. The development, known as the Pacific Northwest LNG project, will include the construction of an LNG plant on an island offshore from Prince Rupert, BC.

pipeline-TransCanada-shale-gas-LNG-Montney-Japex-Petronas-Canada-Japan-energy-EDIWeekly
TransCanada Pipeline is expected to build the pipeline from the North Montney shale block to the west coast, a distance of 750 kilometres.

Japex would take approximately 1.2 million metric tons per year from the development and market it in Japan, the world’s largest importer of LNG.

Petronas, as the Japex announcement indicates, has “extensive experience” with LNG. The company has been operating in Canada, where it has been producing and selling natural gas, and plans to transport the gas by pipeline to the west coast.

The project would involve two plants, each with a capacity of 6 million metric tons per year, at a cost of between $9 billion and $11 billion. The development would be operational in 2018.

TransCanada Pipeline is expected to sign a contract with Petronas to build the pipeline, which will run 750 kilometres from the North Montney shale gas block to the LNG plant. The block is estimated to contain several trillion cubic feet of gas, enough to provide feedstock to the new LNG plant for at least twenty years.

A new company, Japex Montney Ltd, will operate from Calgary in dealings with Petronas and with Progress Energy Canada. The Japanese government holds a 34 per cent interest in Japex.

Did you miss this?

Other Popular Stories

  • Car Tech Trends from CES 2018
  • Guidelines released for self-driving cars by Trump administration: "future of safety and mobility" according to some; recipe for "disaster" say others
  • Australian researchers claim new efficiency record for solar cells
  • Canada's exports soared in June while imports fell
  • Manufacturing grew in August; oil industry to lose $2.1 billion in 2015
  • Oil drags capital spending down, though some bright spots remain: Statistics Canada
  • Microsoft acquires Montreal AI firm that creates "curious" machines that think like humans
  • Global Response to Autonomous Vehicles
  • NASA projects look to the future, and to science fiction
  • GM investing in connected car research at Waterloo U
  • Largest biomass power plant in NA set to open in Atikokan
  • Beam me up, Scotty. Teleportation is small step closer: researchers transport photon 500 kilometers: Micius satellite
  • US moves to cut coal-fired emissions highlight rift with Canada
  • Skilled labour shortage in world oil industry: report
  • BC refinery close to financing deal
  • As the Tesla Model 3 enters production, oil companies revise estimates of EVs on the road upwards to 530 million by 2040
  • 7 Award winners honoured for championing ontario's environment's zero-waste, low-carbon initiatives
  • Engineers being heroes: helping bring much-needed water to some of the 1.8 billion people who desperately need it
  • Nissan sales surpass 100,000 for first time in Canada
  • Ontario Faces Uncertain Future with Carbon Tax
Scroll to Top