Canadian Manufacturing

Progress, Petronas move to next phase of proposed BC natural gas export facility

Lelu Island project would include two liquefaction plants, option to add third

CALGARY—Malaysian state-owned Petronas and Calgary-based Progress Energy say their joint liquified natural gas (LNG) export facility is progressing to the next phase of engineering.

According to the two firms, a detailed feasibility study for the proposed export facility on Lelu Island south of Prince Rupert, B.C., is now complete and the project is moving into a design and engineering phase.

Progress president and CEO Michael Culbert announced the project will officially be named the Pacific Northwest LNG.

The project will include two liquefaction plants when initially constructed, with the option to add a third.

The LNG throughput is currently designed for about 3.8-million tonnes per year for each liquefaction plant, according to the two firms, but Petronas says that capacity would increase by about 60 per cent to six-million tonnes if its proposed takeover of Progress is approved.

If the project proceeds, the estimated investment in the LNG export facility is expected to be between $9- and $11-billion, according to Progress and Petronas.

The construction phase would generate up to 3,500 jobs and the long-term operations of the facility would result in 200 to 300 direct jobs.

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