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Two of Royal Dutch Shell’s Asian partners in a liquefied natural gas venture in western Canada approved their share of the investment. pushing the multibillion-dollar development one step closer to a final approval.
The board of PetroChina. the nation’s largest oil and gas company. approved its $3.46 billion share of the LNG Canada project. the company said in a filing to the Hong Kong stock exchange Friday. Korea Gas Corp. made a similar announcement in Seoul about its stake.
All the partners. including Malaysia’s Petroliam Nasional and Japan’s Mitsubishi Corp.. need to make similar moves for the venture to approve a final investment decision. Shell declined to comment. Petroliam Nasional. known as Petronas. didn’t immediately respond to requests for comment. A Mitsubishi spokesman said Friday it hasn’t yet made a decision.
“LNG Canada looks like it is pretty much getting over the line. so deciding not to go ahead with it now would be a big surprise.“ said Trevor Sikorski. an analyst at Energy Aspects Ltd.
Shell said in 2014 that the project could cost as much as C$40 billion ($31 billion). PetroChina’s announcement Friday about its 15% share implies a total investment of roughly $23 billion across all partners. according to Bloomberg calculations. With the capacity to eventually export as much as 26 MM metric tons year. primarily to Asia. it could be the biggest new LNG terminal to be sanctioned in years.
