Sinopec to Acquire 15% Share of Petronas’s Proposed B.C. LNG Export Terminal

Malaysian national oil company, Petroliam Nasional Berhad (Petronas), announced today that it and its subsidiaries Progress Energy Canada Ltd. and Pacific NorthWest LNG Ltd. (PNW LNG) have signed agreements with China Petrochemical Corporation (Sinopec) where Sinopec, through its affiliates, will acquire a 15% interest in Progress Energy’s LNG-destined gas reserves in northeast British Columbia (B.C.) and in PNW LNG’s proposed LNG export terminal on Lelu Island in Port Edward, near Prince Rupert, B.C., on Canada’s West Coast.  Sinopec also agreed to off-take 1.8 million tons of LNG per year (MTPA), which represents a pro-rata 15% of the LNG facility’s production, for a minimum period of 20 years.  A Sinopec affiliate also signed a binding Heads of Agreement with Petronas for the purchase of additional 3 MTPA of LNG for 20 years, sourced primarily from the PNW LNG project.

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