Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

Pacific NorthWest LNG is proposing to build an LNG export terminal on Lelu Island. Petroleum Brunei has agreed to acquire a 3-per-cent stake in Pacific NorthWest LNG, a project led by Petronas.

Another international player has joined a joint venture to export B.C. liquefied natural gas, the latest move to pump up Canadian LNG projects amid competitive pressures from south of the border.

Petroleum Brunei has signed on as a new partner in Malaysian energy giant Petronas's fledgling B.C. LNG project. But analysts caution that Canada lags behind the United States in the race to export North American LNG to Asia.

Petroleum Brunei is acquiring a 3-per-cent stake in the Pacific NorthWest LNG project led by state-owned Petronas. Earlier this year, Tokyo-based Japan Petroleum Exploration picked up a 10-per-cent interest in Pacific NorthWest LNG.

Story continues below advertisement

After the Brunei transaction closes, Petronas's stake in the project will stand at 87 per cent. The Malaysians have been on the hunt for new partners to help with the massive LNG development planned for Lelu Island, near Prince Rupert in northwestern British Columbia.

As part of the deal, Petroleum Brunei agreed to buy a 3-per-cent share of Pacific NorthWest LNG's output for at least 20 years. Petroleum Brunei is also scooping up a 3-per-cent stake in Progress Energy Canada Ltd.'s northeastern B.C. natural gas assets.

Petronas bought Calgary-based Progress last year for $5.2-billion. Progress president Michael Culbert welcomed state-owned Petroleum Brunei aboard as a strong partner and investor.

Pacific NorthWest LNG president Greg Kist said the LNG joint venture is positioned to lure additional international investors in 2014.

A report by RBC Dominion Securities Inc., however, warns that the United States holds the lead over Canada in the early stages of the competition to export North American LNG. RBC analyst Greg Pardy and his colleagues pointed out that four U.S. energy projects being retrofitted will have huge capacity to export LNG: Sabine Pass in Louisiana, Freeport LNG in Texas, Lake Charles in Louisiana and Dominion Cove Point in Maryland.

At least 10 LNG projects have been proposed for northwestern B.C.

Industry experts say the proponents are in a race within Canada, and there room for only three or four West Coast projects at most as the B.C. proposals face stiff global competition to deliver LNG to Asia.

Story continues below advertisement

Judith Dwarkin, chief energy economist at ITG Investment Research, said in an interview that northeastern British Columbia has an abundance of natural gas that could be piped to LNG export terminals proposed for the Prince Rupert and Kitimat regions.

The notable shale-gas plays in northeastern British Columbia are Montney, Horn River, Liard and Cordova. "It is certainly taking a long time for some of these B.C. projects to find buyers for the LNG," Ms. Dwarkin noted.

The RBC report noted the array of B.C. LNG proposals, including Kitimat LNG, a 50-50 joint venture between the Canadian units of Chevron Corp. and Apache Corp., which are seeking Asian buyers for LNG. In contrast, the LNG Canada project headed by Shell Canada Ltd. already has Asian partners that have agreed to buy LNG – PetroChina, South Korea's Kogas and Japan's Mitsubishi Corp.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies