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

  • Women wanted in construction trades as "tremendous opportunity" exists
  • Manufacturers and employers win with new Labour rules in Ontario; jobs did increase 17,600 in January 2019
  • Israeli aluminum-air electric car battery to be tested in Montreal
  • Goodbye NAFTA, Hello USMCA trade deal: it's not all in the name — Canadian dollar soars, stocks rise; autos win, dairy loses
  • What's old is new again: Airship innovation, the Lighter-Than-Air aircraft
  • Stronger concrete made from recycled tires developed by UBC Engineers: could help reduce carbon footprint of 3 billion tires-a-year
  • 3 billion bottles, cans and containers diverted out of landfill as deposit programs and recycling management hit new milestone in Ontario
  • Pratt & Whitney Canada to invest $1 billion in engine development
  • Helicopter flight simulator to train offshore rig pilots in Newfoundland
  • Unemployment rate drops after strong job gains in May
  • Large Ontario wind power project gets go-ahead, now hiring
  • Government money to Ontario auto parts maker will ensure jobs
  • Global car sales up, luxury auto market surging in Canada: Scotiabank
  • BC refinery close to financing deal
  • Google's self-driving cars revealed to media for first time
  • Richard Browning invents super human 450 km per hour “Iron Man” flight suit (video)
  • Honda Canada makes its 7-millionth car, a Civic EX Sedan
  • First Electric Car Day held at Queen's Park
  • Solar Challenge 3,000 kilometer "race" tests solar capabilities and technologies
  • NASA Keeping an Eye on Tesla Roadster
Scroll to Top