Energy Canada Ltd., Pacific NorthWest LNG Ltd. and Petroliam
Nasional Berhad (Petronas) have signed transaction agreements
whereby China Petrochemical Corp. (Sinopec),
through its affiliates, will acquire a 15% interest in Progress
Energy's LNG-destined natural gas reserves in northeast British
Columbia and in the proposed Pacific NorthWest LNG export
facility on Canada's West Coast.
part of the transaction, Sinopec has agreed to offtake 1.8
million metric tons of LNG per year (metric MMtpy), which
represents a pro-rata 15% of the LNG facility's production, for
a minimum period of 20 years.
addition to the transaction, Sinopec, through its affiliates,
has also signed a binding heads of agreement with Petronas for
the purchase of 3 metric MMtpy of LNG for 20 years, sourced
primarily from the Pacific Northwest LNG project.
3-metric MMtpy sale and purchase is in addition to the 1.8
metric MMtpy of equity LNG offtake, making Sinopec one of the
largest LNG buyers from Pertronas' portfolio. The transaction
is subject to approval by the Chinese authority.
transaction builds upon the two previously announced
transactions in 2013 that saw JAPEX Montney Ltd. acquire a 10%
interest, PetroleumBRUNEI acquire a 3% interest in the project and the recent announcement
on the acquisition of a 10% interest by Indian Oil Corp. Ltd.
the closing of the Indian Oil Corp. Ltd. and Sinopec
acquisitions, Petronas will hold 62% of the integrated project
and will continue to work with potential customers and partners
to secure markets for LNG.
Sinopec is the fourth partner in a consortium of LNG buyers
which Petronas is bringing to the British Columbia LNG export
project. Each of the partners will offtake a volume of LNG
pro-rata to their upstream and downstream equity interest in