KUALA LUMPUR: Petronas will embark on a $35 billion liquid natural gas (LNG) project in Canada following the reversal of Ottawa’s decision to block the Malaysian national oil company’s purchase of Canadian gas producer Progress Energy Resources.
At a joint press conference Sunday with his Canadian counterpart, Malaysian Prime Minister Najib Razak said this followed from the “approval principally” given for the state energy firm’s $5.5 billion purchase.
Najib announced that Petronas will spend CAD$36 billion to build “all the facilities upstream including investment in a pipeline” which he said was the “largest foreign direct investment in Canada by any country”.
“We believe this project will be mutually beneficial because it will open up Canadian energy to new markets, principally East Asia,” he added of the “gargantuan investment”.
Petronas’ bid for Progress was initially blocked in October last year, raising questions over Canada’s openness to foreign investment, before Canadian Prime Minister Stephen Harper reversed the decision in December.