UPDATE 1-Petronas sees $20 bln investment in its Canadian LNG project

Tue Jun 11, 2013 2:36am EDT
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* $20 bln investment includes $5 bln on gas pipeline project

* Capacity could go up to 18 mln tpy with third train

* Petronas looking for partners in project, but will hold at least 50 pct

KUALA LUMPUR, June 11 (Reuters) - Malaysian state oil and gas firm Petronas expects investment of $20 billion in its west Canada liquefied natural gas (LNG) export project that aims to meet growing demand in Asia, a senior company official said on Tuesday.

The project, known as Pacific NorthWest LNG, will build two LNG trains of 6 million tonnes per year (tpy) each by the end of 2018 or 2019, Arif Mahmood, vice president of corporate planning at Petronas told an industry conference.

The $20 billion investment cost includes about $5 billion for a pipeline project to be built by TransCanada Corp to supply gas to the two LNG trains, Mahmood said.

"There is space to build a third train and capacity could go up to 18 million tpy," he said, referring to potential expansion at the site.

Petronas bought its joint venture partner Progress Energy Resources Corp last year in a high-profile deal that had been initially blocked by the Canadian government.

The Malaysian company secured its first LNG buyer for the project after selling a 10 percent stake to Japan Petroleum Exploration Co.   Continued...