KUALA LUMPUR Oct 7 Malaysia's state oil firm
Petronas plans to spend $35 billion to develop shale
gas assets in Canada and build a liquefied natural gas (LNG)
export terminal linking the country to energy hungry Asian
markets, company officials said.
The estimate is $15 billion higher than the figure
previously announced, since it includes costs associated with
drilling wells in British Columbia and taking over Canadian
explorer Progress Energy Resources for $5 billion, they said.
Malaysian Prime Minister Najib Razak was quoted as saying in
newspapers that the project, announced last year after Petronas
bought Progress Energy, would make the Southeast Asian country
the biggest foreign investor in Canada.
"There is a 30-year timeline for the $35 billion
investment," Najib said after holding bilateral meetings with
Canadian Prime Minister Stephen Harper on Sunday.
Petronas had previously said it would spend $20 billion to
build two LNG trains, which super chill gas into liquid form, on
the West Coast. This includes a pipeline to be built by
TransCanada Corp from the fields in the shale-rich
Montney region. The trains are expected to be ready by the end
of 2018 or 2019.
A final investment decision on the entire project will be
taken by the end of 2014, Petronas has said.
The firm is in talks to sell stakes in the entire project to
potential LNG buyers and has finalised one such deal with Japan
Petroleum Exploration Co.