Canadian natural gas development and LNG export investment
plans moving forward
CALGARY,
Dec. 9, 2012 /CNW/ - PETRONAS and
Progress Energy Resources Corp. (Progress) welcome the Canadian Minister of
Industry's decision to approve the acquisition of Progress by PETRONAS Carigali Canada Ltd.
(PETRONAS Canada), which will help develop Canadian natural gas for
the global liquefied natural gas (LNG) export market.
"This approval by the Canadian government marks
a vital step in our plans to develop a LNG export business and
opens promising new business opportunities for Progress, British Columbia and Canadian trade
expansion," said Michael Culbert,
President and CEO, Progress.
"Canada has
great potential in the global LNG market - a growing market that's
already worth more than $300 billion
per year. While international LNG trade is intensely competitive,
new facilities such as our Pacific Northwest LNG project are vital
to building Canada's market
position," Culbert said.
PETRONAS Canada and Progress have now received all necessary
regulatory approvals and the acquisition is scheduled to be
completed on December 12, 2012. The
acquisition will enable PETRONAS to secure long-term strategic gas
resources and leverage on Progress' extensive experience in
unconventional resource development to further grow its
unconventional business. At the same time, PETRONAS will be
bringing LNG experience and expertise in developing LNG
infrastructure in Western Canada,
thus further cementing its position as a major long term global LNG
player.
PETRONAS' well-established and extensive network
of LNG customers will add value to Canada's natural gas resources and provide a
strategic alternative to the traditional North American natural gas
market. This will also generate substantial economic benefits to
the local communities in terms of employment, increasing skill
levels and other economic multiplier benefits.
"Our growth plans include three major Canadian
investment components: Pacific Northwest LNG, which is the
construction of a LNG export facility on Lelu Island in the District of Port Edward, near Prince Rupert; the continued upstream
development of natural gas production in the Montney region of northeast British Columbia and northwest Alberta; and the eventual installation of a
natural gas transmission pipeline, built by a third-party pipeline
company, to move natural gas from the production fields to the LNG
export facility. These components will create thousands of
well-paid jobs during construction of the facility and pipeline, as
well as permanent, ongoing operating jobs throughout our LNG
business, from the Montney region
to the West Coast," said Tan Sri
Dato' Shamsul Azhar Abbas,
President and CEO of PETRONAS.
The partners recently announced that the Pacific
Northwest LNG project is moving into the pre front-end engineering
design (Pre-FEED) phase. The Pre-FEED phase will be undertaken to
provide certainty around project scope and a further understanding
of construction timelines, costs and labour force requirements. The
estimated investment in the LNG export facility is expected to be
between $9 billion and $11 billion,
depending on the final project scope. The construction phase would
result in up to 3,500 direct jobs and the long-term operations of
the facility would result in 200 to 300 direct jobs. Overall,
Pacific Northwest LNG plus the upstream and midstream investments
represent significant revenue and royalties to the provincial and
federal governments, and the opportunity for significant economic
benefits to the local First Nations and communities. A final
investment decision for the project continues to be expected in
late 2014, followed by the first LNG exports in 2018.
Pacific Northwest LNG will be opening an office
in Vancouver, British Columbia, in
early 2013 and will be growing its project team. More information,
including a project backgrounder, is available at
www.pacificnorthwestlng.com.
About PETRONAS
PETRONAS is the national oil and gas company of Malaysia. Incorporated in 1974 the company,
ranked among the most profitable among the Fortune Global 500
entities, is engaged in the oil, gas and petrochemicals industries
with strategic business assets and interests in more than 30
countries. It is one of the world's leading LNG companies and is
fully involved in every value chain of the LNG business, from
liquefaction and shipping to re-gasification and trading. Apart
from its Malaysian production facility, currently one of the
world's largest, PETRONAS also owns interests in LNG assets in
Australia and Egypt.
About Progress
Progress is a Canadian energy
company focused on exploration, development and production of
large, unconventional natural gas resources in northeast
British Columbia and northwest
Alberta. Progress holds the largest acreage position in
the Montney shale gas play.
Throughout its history, Progress
has a solid track record of growing reserves, production and the
underlying value of the company for its shareholders.
Advisory Regarding Forward-Looking
Statements
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
information or statements. In particular, forward looking
statements in this press release include, but are not limited to,
the anticipated timing of the closing of the acquisition of
Progress by PETRONAS Canada;
PETRONAS Canada's plans for Progress following completion of the
acquisition; plans regarding Progress' Pacific Northwest LNG project, the
continued development of the Progress Montney assets and the
installation of a transmission pipeline and the benefits to be
obtained therefrom, including: the pace of project development; the
impact of expansion on productivity and upstream efficiencies; the
benefits to be obtained by the provincial and federal governments,
local First Nations and communities and others as a result of the
project; the timing for the final investment decision; the timing
of anticipated project completion; plans to open a project office
in Vancouver and the timing
thereof; plans to increase the project team; estimated total
project costs; and the number of jobs created for project
construction and long-term operations as a result of Progress' planned LNG business.
The forward-looking statements and
information are based on certain key expectations and assumptions
made by Progress and PETRONAS,
including, among other things, expectations and assumptions
concerning prevailing commodity prices and exchange rates,
applicable credits, royalty rates and tax laws; the performance of
existing wells; the success obtained in drilling new wells; the
sufficiency of budgeted capital expenditures in carrying out
planned activities; receipt of all required regulatory approvals;
and the availability and cost of labour and services and future
operating costs. Although Progress
believes that the expectations and assumptions on which such
forward looking statements and information are based are
reasonable, undue reliance should not be placed on the forward
looking statements and information because Progress can give no assurance that they will
prove to be correct.
Since forward-looking statements and
information address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are
not limited to, the risk that the Pacific Northwest LNG project is
not completed on the terms described or at all; delays or changes
in plans with respect to the project; failure to receive all
required regulatory approvals; failure to realize the anticipated
benefits of the Pacific Northwest LNG project; and changes in
legislation, including but not limited to tax laws, royalties and
environmental regulations; the risk that the transaction between
Progress and PETRONAS may not
close when planned or at all or on the terms and conditions set
forth in the arrangement agreement.
Readers are cautioned that the foregoing list
of factors is not exhaustive. Additional information on these and
other factors that could affect the operations or financial results
of Progress are included in
reports on file with applicable securities regulatory authorities
and may be accessed through the SEDAR website
(www.sedar.com).
Management has included the above summary of
assumptions and risks related to forward-looking information
provided in this press release in order to provide security holders
with a more complete perspective on Progress' future operations in respect of the
Pacific Northwest LNG project and such information may not be
appropriate for other purposes. Progress' actual results, performance or
achievement and the benefits to be derived from the project could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
benefits that Progress and others
will derive there from. Readers are cautioned that the foregoing
lists of factors are not exhaustive. These forward-looking
statements are made as of the date of this press release and
Progress disclaims any intent or
obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or results or
otherwise, other than as required by applicable securities
laws.
SOURCE Progress Energy Resources Corp.