Planned Pacific Northwest LNG plant marks progress

Petronas Carigali Canada Ltd. and Progress Energy Resources Corp., Calgary, owners of what they have now named Pacific Northwest LNG, said Dec. 4 they have moved the project to pre-FEED following a successful feasibility study.

To be built on Lelu Island, off the Hecate Strait in the District of Port Edward, BC, the plant will initially include two, 3.8-million tonne/year (tpy) trains with expansion capability for a third.

If Canadian authorities approve the acquisition of Progress by Petronas, throughput of natural gas at Pacific Northwest LNG will increase to 6 million tpy/train. Only a few weeks ago, Canada denied the acquisition but negotiations are apparently proceeding (OGJ Online, Oct. 29, 2012).

If Pacific Northwest LNG proceeds, estimated investment in the LNG export plant will be $9-11 billion (Can.), “depending on the final project scope,” the companies said.

Petronas and Progress reiterated they expect final investment decision in late 2014, with first LNG exports in 2018.

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