Malaysia invests in Canada's natural gas future
Petronas, Malaysia's state-owned energy giant, announced Sunday it will invest $35 billion in the Canadian liquefied natural gas industry. British Columbia's government hopes to use the revenue generated by projects like this to pay down the province’s debt and to establish a prosperity fund to bank energy-related revenue.
Petronas, the state-owned Malaysian energy giant, is planning to invest $35 billion in the Canadian liquefied natural gas (LNG) industry. This figure—which includes the $5.5 billion acquisition of Calgary-based Progress Energy Resources last year—covers $11 billion for an LNG export plant in British Columbia (B.C.), $5 billion for a proposed TransCanada pipeline to transport natural gas from northeastern B.C. to the coast, and natural gas extraction and processing costs expected over the life of the project.Skip to next paragraph
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Malaysian Prime Minister Mohd Najib made the announcement Sunday during a joint press conference with Canadian Prime Minister Stephen Harper, saying “I'm pleased to confirm that Petronas will set up a plant with all facilities including a pipeline to the plant”; “I’m told that this is the largest direct foreign investment in Canada by any country.” Harper said that he views “Petronas investments very positively” and that “the Government of Canada is very excited by that possibility as are all those I’ve talked to in the energy sector.” (Related article: EIA Predicts U.S to be 2013’s Largest Petroleum Producer)