North Montney LNG Export Joint Venture
Progress Energy Resources Corp. has announced it has executed a binding framework agreement to create a strategic partnership with the Malaysian national oil company, PETRONAS, to develop a portion of Progress’ Montney shale assets in the Foothills of northeast British Columbia.
About This Project
The Montney Shale Gas Play in northeast BC is a world-class unconventional natural gas resource. In the North Montney where Progress operates, the formation is approximately 300 metres think and is a shale/silt formation well suited to horizontal drilling. The North Montney area is located adjacent to the Alaska Highway and has well developed transportation and infrastructure options to move natural gas to markets.
Progress Energy is making a significant step forward in its formal growth strategy for the North Montney by entering into a 50/50 joint venture to develop its Altares, Lily and Kahta properties with PETRONAS, the national oil and gas company of Malaysia. In addition to the upstream development in the North Montney, PETRONAS and Progress Energy will establish an LNG export joint venture to be 80 percent and 20 percent owned respectively. The LNG Export Joint Venture will launch a feasibility study to evaluate building and operating a new LNG export facility on the West Coast of British Columbia.