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2018-06-01 09:00:00

PETRONAS BUYS LNG CANADA

PETRONAS BUYS LNG CANADA

REUTERS - Malaysia's state-owned oil and gas company Petroliam Nasional Bhd [PETR.UL] said on Thursday it is buying a 25 percent stake in a Canadian liquefied natural gas (LNG) export project, nearly a year after cancelling its own planned terminal.

The company, known as Petronas, scrapped plans to build a $36 billion ($28 billion) LNG export terminal in British Columbia last year over concerns of a glut in the market that led to depressed fuel prices.

But surprisingly strong demand from China, South Korea and India has erased those concerns, and market sentiment has recovered.

Petronas said in a statement that it would buy an equity stake in LNG Canada, an export project led by Royal Dutch Shell located in Kitimat, British Columbia. The purchase is expected to close in the next few months, the company said.

Petronas did not give a value for the acquisition.

"We believe this to be a positive development for Petronas," said Prasanth Kakaraparthi senior analyst at Wood Mackenzie.

"We expect the global LNG market to tighten post 2022 and this bodes well for the project," he added.

The C$40 billion LNG Canada project will consist of two LNG production facilities, known as trains, that are expected to export a combined 13 million tonnes per year of LNG.

Petronas is joining as Shell and its partners prepare for a final decision to go ahead with the project, which would be the first large-scale LNG plant constructed in several years.

Shell will continue to be the biggest owner in LNG Canada, holding a 40 percent stake. Other partners include PetroChina, Mitsubishi's Diamond LNG and Korea Gas.

LONG TERM

Since scrapping earlier plans, Petronas had been looking for ways to generate revenue from its assets in that region.

Petronas' North Montney assets in British Columbia are rich in natural gas. Petronas' and its North Montney joint venture partners are one of the largest natural gas resource owners in Canada with over 52 Tcf of reserves and contingent resources, it said.

An equity stake in LNG Canada will enhance the company's aims to develop natural gas resource in the North Montney through its subsidiary, Progress Energy Canada Ltd.

"Petronas is in Canada for the long-term and we are exploring a number of business opportunities that will allow us to increase our production and accelerate the monetisation of our world-class resources in the North Montney," President and Group Chief Executive Officer Tan Sri Wan Zulkiflee Wan Ariffin said in the statement.

"LNG is just one of those opportunities," he said.

In March, Petronas said it was one of the producers involved in TransCanada's proposal to expand a pipeline system that would open up more markets for its gas produced in Western Canada.

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Earlier:

 PETRONAS - ARAMCO COLLABORATION
2018, March, 30, 11:10:00

PETRONAS - ARAMCO COLLABORATION

SAUDI ARAMCO - Petroliam Nasional Berhad (PETRONAS), the national oil company of Malaysia, and Saudi Aramco, the national oil company of Saudi Arabia, are pleased to announce the formation of two joint ventures for the Refinery and Petrochemical Integrated Development (RAPID) project.

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AUSTRALIA'S LNG INVESTMENT: $900 MLN

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 PETRONAS PROFIT UP BY 91%
2018, March, 4, 10:40:00

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PETRONAS - PETRONAS’ Profit After Tax (PAT) jumped by 91 per cent in 2017 at RM45.5 billion, compared to RM23.8 billion recorded in 2016. The increase was achieved on the back of higher revenue, lower net impairment on assets and well costs and continuous efforts to optimise costs in 2017.

 SAUDI BUYS PETRONAS: $7 BLN
2017, February, 28, 18:45:00

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Saudi oil giant Aramco IPO-ARMO.SE will buy an equity stake in Malaysian firm Petronas' refining and petrochemicals project in the southeast Asian country, the companies confirmed on Tuesday, investing a total of $7 billion.

 MALAYSIAN - CANADIAN LNG: $27 BLN
2016, September, 29, 18:35:00

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Petronas, Malaysia’s state-owned oil and gas group, has gained approval from the Canadian government for a controversial $27bn liquefied natural gas project — but said it would have to consider the environmental conditions attached before deciding to proceed.

 PETRONAS PROFIT DOWN 60%
2016, May, 19, 20:10:00

PETRONAS PROFIT DOWN 60%

Malaysia's national oil company (NOC) Petroliam Nasional Berhad (PETRONAS) posted a profit after tax of $1.1 billion (MYR 4.6 billion) for the first quarter of 2016 (1Q 2016) that ended March 31, down 60 percent from $2.8 billion (MYR 11.4 billion) recorded in the same period last year, while revenue fell 26 percent to $12.1 billion (MYR 49.1 billion) from $16.3 billion (MYR 66.2 billion) in the corresponding period, financial results released Wednesday by the firm showed.

 

 PETRONAS CUTS $12 BLN, 1,000 JOBS
2016, March, 3, 18:50:00

PETRONAS CUTS $12 BLN, 1,000 JOBS

Malaysia’s state-run Petronas plans to reduce capital and operating expenditures by $12 billion over the next 3 years, starting with $3.6-4.8 billion in 2016. The move comes with a companywide reorganization that will result in about 1,000 redundancies.

Tags: PETRONAS, LNG, CANADA