British Columbia is home to significant natural gas resources that greatly exceed the domestic need. A federal government report estimates B.C has enough natural gas to support domestic use and exports for 150 years. Historically, B.C. has sold surplus natural gas to other jurisdictions in Canada and the United States. Increased natural gas production in the U.S. has decreased the demand and price of B.C.’s natural gas. However, key Asian markets including need to find new natural gas providers to meet their current and growing needs as they transition from higher-emitting fuel sources.
Pacific NorthWest LNG is a proposed natural gas liquefaction and export facility on Lelu Island within the District of Port Edward on land administered by the Prince Rupert Port Authority. The facility would liquefy and export natural gas produced by Progress Energy Canada Ltd. in northeast B.C. The facility represents an estimated $11 billion investment. Pacific NorthWest LNG has contracted with Canadian company TransCanada Pipeline Limited to design, construct and operate a new natural gas pipeline that will transport B.C. natural gas to our facility.
Pacific NorthWest LNG will generate new economic and social benefits for the local community, BC and Canada in an environmentally safe and sustainable manner. Up to 4,500 jobs will be created at the peak of construction, plus 330 new long-term careers operating the facility in the community and an estimated 300 spin-off jobs in the region.
PETRONAS is the majority owner of Pacific NorthWest LNG. As is common with projects involving the level of investment Pacific NorthWest LNG would require, the project has a number of partners who have purchased minority stakes in the project. The addition of new partners buying into the project demonstrates that Pacific NorthWest LNG is seen as a viable, credible project by global investors, and that there is strong interest in British Columbia’s developing LNG export industry. Minority partners receive an offtake of LNG from the facility equal to their ownership stake in the project. Some partners may also opt to purchase additional LNG supply from PETRONAS’ share of the output.
PETRONAS intends to maintain a majority share and operating interest in the project. Included below is a breakdown of the current ownership shares in Pacific NorthWest LNG.