Crafting a bright new future for Canada’s energy exports

12-1Progress Energy Canada Ltd., a leader in Canadian natural gas development, is one of the most active drillers in the country. Producing more than 350 million cubic feet of natural gas per day, Progress serves Canadian markets while ambitiously expanding production capacity in preparation for the opening of new liquefied natural gas (LNG) markets in Asia.

British Columbia’s’ government has its sights set on a thriving LNG industry in the province and Progress is a key piece of the equation. Progress’ parent company PETRONAS, a global leader in LNG, is also the owner of Progress’ sister company, Pacific Northwest LNG (PNWLNG), which is planning to build a world-scale LNG export facility on Canada’s west coast in Port Edward near Prince Rupert, British Columbia. Progress will supply the gas to the PNWLNG terminal at a volume of two billion cubic feet per day to be shipped and supplied to markets in Asia.

PETRONAS is working towards making a final investment decision on the project by the end of 2014 with the first gas shipment expected beginning of 2019, creating thousands of jobs, billions in economic activity, and clean fuel for some of the largest populations on the planet.

In anticipation of a positive final investment decision, Progress is ramping up activity to identify natural gas reserves. The company has set a target of 15 trillion cubic feet in reserves by Q4 2014. Already halfway there, Progress operated 28 rigs in the Montney in Northeastern British Columbia this past winter. This activity alone created approximately 3,500 direct and indirect jobs for Canadians. Additionally, Progress has invested more than $280 million into British Columbia’s economy this year alone through its resource extraction activities. Total direct spending on this project is expected to be $36 billion.

There are more than a dozen competing projects with aspirations to export LNG to Asian markets, however, Progress has been working diligently to form partnerships that gives it an advantage in meeting its objectives. PETRONAS and Progress have entered into a joint venture with four partners who will each take a portion of the exported gas for their local markets. PETRONAS (62 per cent), JAPEX (10 per cent), PetroleumBrunei (three per cent), IndianOil (10 per cent) and China’s Sinopec (15 per cent) are part of the North Montney Joint Venture.

Progress has secured an agreement from TransCanada Corporate to both its extend its NOVA Gas Transmission system into the North Montney region, and also to build an 850 to 900-kilometre pipeline to deliver North Montney gas to Prince Rupert on the west coast of British Columbia.

This project has the resource, the pipeline, the LNG expertise and the market – it’s the total package.

 

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