Project Moving into the Pre-FEED Phase
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 aggressive 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 leading 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.
Advisory Regarding Forward-Looking
Statements
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
information or statements. In particular, forward looking
statements in this press release include, but are not limited to,
plans regarding Progress' Pacific Northwest LNG project and the
benefits to be obtained therefrom, including: the pace of project
development; the number of liquefaction plants to be included in
the project; anticipated capacity levels; anticipated increases in
capacity levels as a result of the completion of the announced
transaction between Progress and PETRONAS; the benefits to be
obtained by the provincial and federal governments, local First
Nations and communities and others as a result of the project; the
timing for the final investment decision; the timing of anticipated
project completion; plans to open a project office in Vancouver and the timing thereof; plans to
increase the project team; estimated total project costs; and the
number of jobs created for project construction and long-term
operations.
The forward-looking statements and
information are based on certain key expectations and assumptions
made by Progress and PETRONAS, including, among other things,
expectations and assumptions concerning prevailing commodity prices
and exchange rates, applicable credits, royalty rates and tax laws;
the performance of existing wells; the success obtained in drilling
new wells; the sufficiency of budgeted capital expenditures in
carrying out planned activities; receipt of all required regulatory
approvals; and the availability and cost of labour and services and
future operating costs. Although Progress believes that the
expectations and assumptions on which such forward looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward looking statements and
information because Progress can give no assurance that they will
prove to be correct.
Since forward-looking statements and
information address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are
not limited to, the risk that the Pacific Northwest LNG project is
not completed on the terms described or at all; delays or changes
in plans with respect to the project; failure to receive all
required regulatory approvals; failure to realize the anticipated
benefits of the Pacific Northwest LNG project; and changes in
legislation, including but not limited to tax laws, royalties and
environmental regulations; the risk that the transaction between
Progress and PETRONAS may not close when planned or at all or on
the terms and conditions set forth in the arrangement
agreement.
Readers are cautioned that the foregoing list
of factors is not exhaustive. Additional information on these and
other factors that could affect the operations or financial results
of Progress are included in reports on file with applicable
securities regulatory authorities and may be accessed through the
SEDAR website (www.sedar.com).
Management has included the above summary of
assumptions and risks related to forward-looking information
provided in this press release in order to provide security holders
with a more complete perspective on Progress' future operations in
respect of the Pacific Northwest LNG project and such information
may not be appropriate for other purposes. Progress' actual
results, performance or achievement and the benefits to be derived
from the project could differ materially from those expressed in,
or implied by, these forward-looking statements and, accordingly,
no assurance can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of
them do so, what benefits that Progress and others will derive
there from. Readers are cautioned that the foregoing lists of
factors are not exhaustive. These forward-looking statements are
made as of the date of this press release and Progress disclaims
any intent or obligation to update publicly any forward-looking
statements, whether as a result of new information, future events
or results or otherwise, other than as required by applicable
securities laws.
SOURCE Progress Energy Resources Corp.
