British Columbia LNG project in design competition
The Malaysia national oil company Petronas and its partner Japan Petroleum Exploration Corporation Ltd (Japex) are opening a design competition for the greenfield Pacific Northwest LNG project in British Columbia, Canada.
With assets in the Deep Basin in Alberta and in Foothills, Progress is the largest land holder in the Montney shale gas basin and currently produces more than 300 million cubic feet per day (cf/d) of natural gas.
With this acquisition Petronas secured 1,9 trillion cubic feet of proven and probable reserves (2P) of unconventional gas in northeast British Columbia and northwest Alberta for the supply of natural gas to its project of liquefied natural gas (LNG) plant.
From the conceptual study, the Pacific Northwest LNG project should include:
– Gas inlet system
– Gas processing units
– Two LNG trains of 6 million tonnes per year (t/y) capacity each
– Marine and jetty topsides facilities
– Offsites and buildings
– Storage and loading facilities
– Utilities and power generation.
In a second phase a third LNG train of 6 million t/y should be added.
Bechtel, KBR, Technip in BC LNG competitive FEED
– Bechtel from USA
In this scenario Petronas and Japex intend to take advantage of their Prince Rupert gas transmission project to link their shale gas reserves in British Columbia and Western Alberta to the Pacific Northwest LNG project.
In parallel to the construction of this $6 billion capital expenditure Prince Rupert pipeline and $20 billion Pacific Northwest LNG project, Petronas continues to develop its natural gas production on the upstream side.
Based on this first contract signed with Japex, Petronas will take the opportunity of the design competition between Bechtel, KBR and Technip to attract new partners ready to take up to 50% stake in the Pacific Northwest LNG project in British Columbia.