Canada and India will pledge to expand trade in oil and gas as the countries reboot their relationship after a diplomatic chill.
Canada has announced rules that have been promised for years to reduce methane emissions in the country’s oil & gas sector.
EIG Global Energy Partners’ MidOcean Energy said it has entered into definitive agreements to invest in Petroliam Nasional Bhd’s (Petronas) Canadian businesses, including by acquiring a stake in the recently fired up LNG Canada.
The company increased its ownership in WestOil Limited to 48.5%, giving it a 33.95% indirect working interest in Block 2712A, a 5,484 km² license in the basin’s core. The block sits adjacent to acreage held by Chevron and Pan Continental, strategically positioning Oregen within a high-potential exploration corridor.
The facility will involve a floating production vessel with the capacity to produce some 12 million tons of liquefied natural gas annually. The markets for this LNG will be in the Pacific Basin, per the project’s website, with a focus on Asia, where demand for low-emission fuels is growing.
“The world will not consume one less barrel of oil simply because Canada chooses not to provide it. That barrel will come from somewhere else,” Suncor chief executive Rich Kruger said at the hearing. Imperial Oil’s CEO noted the presence of other “vehicles and requirements” put in place to curb emissions of carbon dioxide in the country.
The Head of Agreement confirms BW Offshore as preferred bidder for the FPSO supporting Canada’s first deepwater oil project, which is operated by Equinor in partnership with BP and holds an estimated 400 million barrels of recoverable light crude in its initial phase.
The acquisition consolidates two leading SAGD oil sands producers with combined production exceeding 720,000 barrels per day and complementary assets in Christina Lake, Alberta.
Announcing its maiden dispatch from the project, Petronas said, “LNG Canada is a critical component of PETRONAS’ global LNG strategy to diversify its supply portfolio and increase market flexibility. Strategically located on Canada’s west coast and connected to PETRONAS’ upstream gas assets in Northeast B.C., LNG Canada offers a direct and efficient shipping corridor to key North Asian markets including Japan, South Korea and China”.
LNG Canada has shipped its first cargo from Kitimat on the west coast of Canada, a milestone for Canada’s first large-scale LNG project, Shell announced on Monday.