KUALA LUMPUR (June 4): Petroliam Nasional Bhd (Petronas) has dismissed a recent report suggesting a potential exit from Canada, reiterating its commitment to long-term investments in the country’s energy sector.
The Malaysian state-owned energy company operates the North Montney Joint Venture (NMJV) upstream gas project, and is a major equity partner in LNG Canada — the US$40 billion (RM169.7 billion) liquefied natural gas (LNG) facility nearing completion in Kitimat, British Columbia.
“Any reports that claim Petronas is leaving Canada are inaccurate,” said Petronas in a brief statement on Wednesday.
Bloomberg reported on Tuesday (June 3) that Petronas is exploring options for its Canadian subsidiary, formerly Progress Energy Resources Corp, which could include a full or partial sale.
Quoting sources familiar with the matter, Petronas was said to be working with a financial adviser and has started gauging interest from potential buyers. The business could be valued between US$6 billion and US$7 billion. It said Petronas may also consider selling only a minority stake, depending on the offers received.
Petronas bought Progress Energy for about US$5.3 billion in 2012, which gave it shale gas properties in northeastern British Columbia.
Petronas also holds a 25% stake in LNG Canada, alongside Shell plc, PetroChina Co Ltd, Mitsubishi Corp, and Korea Gas Corp. It is one of the lowest carbon emissions intensity plants in the world.
“With LNG Canada preparing for its first cargo this year, Petronas is proud to be providing lower carbon, reliable Canadian liquefied natural gas, to support global energy markets for decades to come,” Petronas added.