PETRONAS & Progress announce the next phase of LNG export project
Wednesday, Dec 05, 2012

CALGARY, Dec. 4, 2012 /CNW/ - PETRONAS Carigali Canada Ltd. (PETRONAS) and Progress Energy Resources Corp. (Progress) today announced that their proposed LNG export facility is moving into the next phase of engineering. The project's detailed feasibility study for a LNG export facility on Lelu Island in the District of Port Edward has been successfully completed and the project is moving into the pre front-end engineering design (Pre-FEED) phase. The Pre-FEED phase will be undertaken to provide certainty around project scope and a further understanding of construction timelines, costs and labour force requirements.

"We are excited to have completed the Detailed Feasibility Study phase and are now moving into the next phase of our engineering work, which will include the submission of our project description to Canadian regulators in early 2013," said Michael Culbert, President and CEO, Progress. "In addition, we are pleased to have officially named our project Pacific Northwest LNG and will continue to move the project forward at an aggre sive pace."

The project will include two trains, or liquefaction plants, when initially
constructed. Planning will include the ability to expand with the addition of a third train in the future. The LNG throughput is currently designed for about 3.8 million tonnes per annum per train based on the LNG Export Joint Venture that was announced between the two companies in 2011.

If the proposed acquisition of Progress by PETRONAS, that is currently being reviewed by the federal government is approved, the throughput of natural gas at the LNG export facility is expected to increase by approximately 60 per cent to 6 million tonnes per annum per train which will also result in concurrent enhancements to the productivity and efficiency of related upstream activities.

Overall, Pacific Northwest LNG represents significant revenue and royalties to the provincial and federal governments, and the opportunity for economic benefits to the local First Nations and communities. A final investment decision for the project continues to be expected in late 2014, followed by the first LNG exports in 2018.

Pacific Northwest LNG will be opening its Vancouver, British Columbia office in early 2013 and will be growing its project team.

If Pacific Northwest LNG proceeds, the estimated investment in the LNG export facility is expected to be between $9 billion and $11 billion, depending on the final project scope. The construction phase would result in up to 3,500 direct jobs and the long-term operations of the facility would result in 200 to 300 direct jobs.

More information, including a project backgrounder, is available at
www.pacificnorthwestlng.com.

About PETRONAS

PETRONAS is the national oil and gas company of Malaysia. Incorporated in 1974 the company, ranked among the most profitable among the Fortune Global 500 entities, is engaged in the oil, gas and petrochemicals industries with strategic business assets and interests in more than 30 countries. It is one of the world's leaing LNG companies and is fully involved in every value chain of the LNG business, from liquefaction and shipping to re-gasification and trading. Apart from its Malaysian production facility, currently one of the world's largest, PETRONAS also owns interests in LNG assets in Australia and Egypt.

About Progress

Progress is a Canadian energy company focused on exploration, development and production of large, unconventional natural gas resources in northeast British Columbia and northwest Alberta. Progress holds the largest acreage position in the Montney shale gas play. Throughout its history, Progress has a solid track record of growing reserves, production and the underlying value of the company for its shareholders.

SOURCE Progress Energy Resources Corp.

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