Petronas to build $35 billion LNG plant in Canada

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LNG plant CanadaMalaysia’s oil and gas giant Petronas will embark on a $35 billion liquid natural gas (LNG) project in Canada following the reversal of Ottawa’s decision to block the Malaysian national oil company’s purchase of Canadian gas producer Progress Energy Resources.

The deal was announced at a press conference on October 6 by Malaysian Prime Minister Najib Razak together with Canadian Prime Minister Stephen Harper.

Najib announced that Petronas will spend $35 billion to build “all the facilities upstream including investment in a pipeline” which he said was the “largest foreign direct investment in Canada by any country”.

“We believe this project will be mutually beneficial because it will open up Canadian energy to new markets, principally East Asia,” he added of the “gargantuan investment”.

Petronas’ bid for Progress was initially blocked in October 2012, raising questions over Canada’s openness to foreign investment, before Canadian Prime Minister Stephen Harper reversed the decision in December.

Harper batted away concerns over Canada’s foreign investment policy, saying that total FDI “has continued to increase over the past year and has increased very rapidly. I’m told it’s up by almost a third”.

“We view the Petronas investments very positively and all the indications I have is that Petronas is looking at further investments. Obviously our policy involves the use of discretion when it comes to state-owned enterprise,” he said.

Harper added that each investment would be judged on its own merit and whether it serves the interests of Canada’s economy, while Najib also pointed out that the pipeline deal in the Petronas LNG project has been awarded to a Canadian firm.

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Reading Time: 2 minutes

Malaysia’s oil and gas giant Petronas will embark on a $35 billion liquid natural gas (LNG) project in Canada following the reversal of Ottawa’s decision to block the Malaysian national oil company’s purchase of Canadian gas producer Progress Energy Resources.

Reading Time: 2 minutes

LNG plant CanadaMalaysia’s oil and gas giant Petronas will embark on a $35 billion liquid natural gas (LNG) project in Canada following the reversal of Ottawa’s decision to block the Malaysian national oil company’s purchase of Canadian gas producer Progress Energy Resources.

The deal was announced at a press conference on October 6 by Malaysian Prime Minister Najib Razak together with Canadian Prime Minister Stephen Harper.

Najib announced that Petronas will spend $35 billion to build “all the facilities upstream including investment in a pipeline” which he said was the “largest foreign direct investment in Canada by any country”.

“We believe this project will be mutually beneficial because it will open up Canadian energy to new markets, principally East Asia,” he added of the “gargantuan investment”.

Petronas’ bid for Progress was initially blocked in October 2012, raising questions over Canada’s openness to foreign investment, before Canadian Prime Minister Stephen Harper reversed the decision in December.

Harper batted away concerns over Canada’s foreign investment policy, saying that total FDI “has continued to increase over the past year and has increased very rapidly. I’m told it’s up by almost a third”.

“We view the Petronas investments very positively and all the indications I have is that Petronas is looking at further investments. Obviously our policy involves the use of discretion when it comes to state-owned enterprise,” he said.

Harper added that each investment would be judged on its own merit and whether it serves the interests of Canada’s economy, while Najib also pointed out that the pipeline deal in the Petronas LNG project has been awarded to a Canadian firm.

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