Indian Oil Corp. Acquires 10% Share of Pacific NorthWest LNG Terminal
Today, Progress Energy Canada Ltd. (Progress Energy) announced that it has entered into agreements with Pacific NorthWest LNG Ltd. (PNW LNG) and Petroliam Nasional Berhad (Petronas) whereby Indian Oil Corporation Ltd. (Indian Oil), through its affiliates, will acquire a 10% interest in Progress Energy’s LNG-destined natural gas reserves in northeast British Columbia (B.C.) and in the proposed PNW LNG export terminal on Lelu Island in Port Edward, near Prince Rupert, B.C. As part of the transaction, Indian Oil has also agreed to offtake 1.2 million tons/year of LNG, which represents 10 percent of the LNG facility’s production, for a minimum period of 20 years. According to the press release, PNW LNG plans to reach a final investment decision on the terminal by the end of 2014, with the first LNG exports targeted for late 2018.