Repsol seeks partners for $4 bln Canadian LNG export plant-sources

Tue Dec 2, 2014 6:30am EST
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By Jose Elías Rodríguez

MADRID Dec 2 (Reuters) - Spanish oil company Repsol is seeking partners to invest $4 billion to export natural gas from North America to Europe, which is looking to cut its dependence on supplies from Russia, two sources familiar with the matter said.

Repsol aims to build the plant with a planned annual capacity of 5 million metric tonnes of liquid natural gas (LNG) at its Canaport terminal on the east coast of Canada in New Brunswick to meet Europe's growing demands for cheap and dependable gas, one of the sources said on Tuesday.

The new plant would ship shale gas from the United States, the sources said, without giving further details.

"The idea is to take advantage of the Canaport site to export gas to Europe at a time when it is looking for safer and more competitive supply sources," said the source, adding that Repsol would be a minority partner.

"This will only be done if there are partners who want to take on the bulk of the investment," said the source who is involved in the project.

Repsol said it has taken steps to study the viability of the project, but did not give further details.

Canada wants to become a major exporter of natural gas and crude oil to challenge the more established industry in the Gulf of Mexico in the United States.

British Columbia on Canada's west coast has cut taxes for LNG to encourage oil companies, such as Petronas, Shell and Chevron, to build capacity to ship Canadian gas to Asian markets.   Continued...