China Petrochemical Corporation (Sinopec) will acquire a 15% interest in Progress Energy Canada's natural gas reserves in northeast British Columbia, as well as in the proposed Pacific NorthWest LNG export facility, Progress announced April 29.
The project is a joint venture between Progress, Petroliam Nasional Berhad (Petronas) and Pacific NorthWest LNG Ltd.
Sinopec joins Japex Montney Ltd. and PetroleumBrunei with interests in the project (10% and 3%, respectively). After the closing of the transaction, Petronas will own 62% of the project.
"Our energy export sector continues to gain momentum with this transaction and the addition of a fourth investor," said Greg Kist, president of Pacific NorthWest LNG.
Part of the agreement will see Sinopec offtake 1.8 million tonnes of LNG per year, which represents about 15% of the facility's production, for the next 20 years.
