The Malaysian Energy giant Petronas and Canadian natural gas company Progress Energy, who have been sterling up their takeover deal to be approved by the Canadian government, have now announced to collaboratively invest on a business development project of $9 billion-plus liquefied natural gas plant at Prince Rupert. This decision was perhaps made after the rejection of Ottawa to allow Malaysian company’s $5.9 billion bid to buy Progress.
The President of Progress, Michael Culbert, made the announcement on Tuesday, declaring that the two companies have decided to pursue the plans of their LNG plant regardless of the takeover bid. In addition to the fair and square investment of both companies, they have more to offer to the Canadian government. It is declared that in case Ottawa reverses their decision of disapproving the takeover bid, both the companies will have enough natural gas reserves for expanding the size of their LNG plant that is planned to be located on Lelu Island, within the port of Prince Rupert.
Culbert explicitly stated that in case the takeover deal is approved, “on the LNG side itself it is projected to be about a 60 per cent increase in capacity. That moves the total natural gas supply from 1.2 billion cubic feet per day to 2 billion cubic feet per day.” He further explained that “there’s a window and an opportunity for Canada to be a participant and Progress and Petronas are moving ahead on our joint venture arrangement as we consummated a year and a half ago to make good and deliver on that. If we can enhance the project economics by increasing the size of it, it just makes that project, and Canada, more competitive.”
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