CALGARY, A.B. — Petronas’ Canadian subsidiary Progress Energy is going to be looking at other LNG opportunities to monetize its assets after its parent company pulled out of the proposed Pacific NorthWest LNG project earlier this year.
Reuters is reporting that an executive with Calgary-based Progress said it planned to make money out of its 800,000 acres of land rights in the Montney shale play and 50 trillion cubic feet a day of reserves. Progress’s vice president of production, Dennis Lawrence, told an energy conference in Calgary on Wednesday that the company had spent a significant amount of money acquiring that position over the last five years and it was time to get the gas to market.
“We are in the very early stages of this but we will look hard at other LNG opportunities, we will look hard at petrochemical opportunities,” Lawrence said in a panel discussion. “That’s not a process you figure out in a month or two.”
Lawrence did not specify which LNG opportunities Progress would look at. In August Canada’s Globe and Mail newspaper reported that Petronas was considering acquiring a minority stake in the LNG Canada project, a joint venture led by Royal Dutch Shell.
LNG Canada’s CEO Andy Calitz, who also took part in the panel discussion, said that the Shell-backed company will be ready to make a final investment decision on the $32 billion project in 2018.
The joint venture group last year delayed a final decision to find ways to reduce costs.