Petronas expects to invest up to $16 billion in LNG export facility in Canada

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Lelu Island, near Prince Rupert, BC, is seen March 8, 2013. Malaysian national oil company Petronas says it expects to spend up to 6 billion to build a liquefied natural gas export facility and related infrastructure in Western Canada. The Pacific Northwest LNG project, located on Lelu Island in the Port Edward district, will liquefy and export natural gas produced in northeastern British Columbia by Progress Energy Canada. THE CANADIAN PRESS/Robin Rowland

KUALA LUMPUR, Malaysia – Malaysian national oil company Petronas says it expects to spend up to $16 billion to build a liquefied natural gas export facility in Western Canada.

Arif Mahmood, Petronas vice-president of corporate planning, says the company will invest between $9 billion and $11 billion to construct two LNG liquefaction plants.

Another $5 billion will be invested in a 750 kilometre-long pipeline, to be built by TransCanada Corp., to supply gas to the two plants, he said today in an email to The Associated Press.

The Pacific Northwest LNG project, located on Lelu Island in the Port Edward district, will liquefy and export natural gas produced by Progress Energy Canada.

Both companies are owned by Petronas, which secured its first LNG buyer, Japan Petroleum Exploration Co.

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