Brunei company moves into Canadian LNG sector

Dec. 9, 2013 at 6:52 AM

KUALA LUMPUR, Malaysia, Dec. 9 (UPI) -- Malaysian energy company Petronas said Monday it agreed to sell a minor share of its Canadian shale gas assets to a petroleum company based in Brunei.

Petronas said PetroleumBrunei acquired a share of the production from its liquefied natural gas facility in the Pacific Northwest.

"As part of the proposed transaction, PetroleumBrunei has agreed to buy a 3 percent share of the LNG facility's [natural gas] production for a minimum of 20 years," the Malaysian company said.

Petronas acquired Canadian rival Progress Energy last year. The first gas from a LNG project in the Pacific Northwest is expected by 2018.

Petronas did not indicate the value of the transaction with PetroleumBrunei or the volume of LNG secured in the deal.

The Canadian government has courted Asian investors to its energy sector in an effort to diversify an export market that depends almost exclusively on the United States.

Both companies signed similar arrangements for exploration and development work in oil and natural gas fields in Malaysia and Brunei.

Related UPI Stories
Latest Headlines
Trending Stories
TSU shooting: 1 dead, 1 wounded in third shooting this week at Houston campus
Listeria threat prompts Whole Foods cheese recall
Russia says missiles aimed at Syria did not land in Iran
Captive orca breeding banned at California's SeaWorld
Wrong drug used in Oklahoma execution