World News
Petronas Investing $35B in Canadian LNG Project
Malaysian national oil company Petroliam Nasional Bhd. (Petronas) will spend $35 billion on a Canadian liquefied natural gas (LNG) project including a pipeline, the AFP reports.
The company's investment comes after the Canadian government reversed a decision to block it from acquiring Canadian gas company Progress Energy Resources, and Malaysian Prime Minister Najib Razak said Petronas has received approval for the $5.5 billion purchase.
"We believe this project will be mutually beneficial because it will open up Canadian energy to new markets, principally East Asia," Najib said.
Canadian Prime Minister Stephen Harper said foreign investments must be judged by how well they serve the Canadian economy, and Najib said the contract for the pipeline has been awarded to a Canadian firm.
"We view the Petronas investments very positively and all the indications I have is that Petronas is looking at further investments," Harper said.
"Obviously our policy involves the use of discretion when it comes to state-owned enterprise."
Earlier this year Petronas made an offer to buy additional shares of Malaysia's MISC Bhd, the world's second-largest LNG tanker operator, taking the company private, but the deal did not receive the minimum acceptance level to move forward, according to Malaysian news site The Star.
Petronas has since ordered eight to ten LNG carriers on its own balance sheet.
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