Sinopec announces that it has reached an agreement for integrated investment and cooperation with PETRONAS in North Montney Joint Venture and Pacific NorthWest LNG (PNW LNG) project in Britsh Columbia, Canada. This transaction is subject to approval by the relevant Chinese authority.
Both parties agree that Sinopec, with its partner, acquires 15 percent interest in the integrated project, and offtakes 1.8 mmtpa LNG which represents a pro-rata 15 percent of the LNG facility's production for 20 years. In addition, Sinopec, through its affiliate, signed a binding Heads of Agreement (HOA) for the purchase of 3 mmtpa LNG for 20 years.
Sinopec will acquire the equity in both upstream assets and downstream facilities, and secure an equivalent volume of LNG offtake.
In general, Sinopec will supply the total volume of 4.8 mmtpa LNG, to be acquired through the transaction with PETRONAS, to the receiving terminals under expansion or construction in the future, thus boosting its domestic gas market share and satisfying the demand of clean energy in the coastal regions of China.
Pacific NorthWest LNG is located on Canada's West Coast near Prince Rupert, British Columbia, with natural gas sourced from Progress Energy Canada Ltd's North Montney assets. PETRONAS of Malaysia through its subsidiary companies is the project operator and majority owner of the Canadian Progress Energy and Pacific Northwest LNG projects. The proposed facility will comprise an initial development of two LNG trains of approximately 6 mmpta each, expected to come online by 2018 or early 2019, and a subsequent development of a third train.