Business

Japanese firm part owner of planned Lelu Island LNG terminal

A Japanese company now owns a portion of the Pacific Northwest LNG terminal proposed for Lelu Island in Prince Rupert.

The Japanese Petroleum Exploration Co. (Japex) has entered into an agreement with the Malaysian state-owned Petronas to acquire a 10 per cent interest in the LNG export facility and a 10 per cent interest in the North Montney properties that will provide the gas to Prince Rupert. As well as owning a portion of the project, the company has agreed to purchase. 1.2 million tonnes of LNG per year from the terminal, equating to 10 per cent of the estimated 12 million tonne annual production.

The agreement to purchase the LNG comes following an announcement by Japex last November of its plans to construct an LNG receiving terminal in Shinchi Town and a 40 kilometre pipeline connecting to the country's main gas line. The receiving terminal is scheduled to begin operations in 2018, the same year Pacific Northwest LNG is hoping to begin its export operations.

The Pacific Northwest LNG terminal is currently in the public comment period of its Environmental Assessment phase, while Spectra Energy hopes to have submit an environmental assessment for the pipeline to connect the terminal to Northeastern B.C in early 2014.

Japex and Petronas, which took over Canadian company Progress Energy in a $6-billion deal late last year, have previously worked together in the development of the Garraf project in Iraq.

We encourage an open exchange of ideas on this story's topic, but we ask you to follow our guidelines for respecting community standards. Personal attacks, inappropriate language, and off-topic comments may be removed, and comment privileges revoked, per our Terms of Use. Please see our FAQ if you have questions or concerns about using Facebook to comment.