Nexen Energy, the wholly-owned subsidiary of CNOOC, has signed an agreement with the Government of British Columbia (BC), Canada, to examine the possibility of building a liquefied natural gas (LNG) plant and export terminal.
Under the agreement which is represented by the Ministry of Forests, Lands and Natural Resource Operations, Nexen and its joint venture partners including INPEX and JGC will get the exclusive right to pursue long-term access to crown land at Grassy Point near Prince Rupert.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
CNOOC CEO Li Fanrong said the company could increase the value of its Canadian shale gas business with LNG exports.
"With robust financial capacity, a track record of efficient, innovative and responsible development and significant LNG expertise, Nexen and our joint venture partners are well positioned to pursue this opportunity," Fanrong added.
According to Nexen Energy, financial attractiveness is dependent on acceptable cost estimates, fiscal terms and obtaining sales agreements that are priced suitably.
Going forward, Nexen Energy has a long planning process that includes a site viability review, a comprehensive environmental impact assessment and a stakeholder consultation.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThroughout the process, the company will also evaluate various steps to be taken to help the Province of British Columbia realise its goal of creating an industry that strengthens pan-Pacific trading relationships and delivers social and economic benefits, while creating jobs.
Image: CNOOC’s Canadian shale gas holdings and proximity to Grassy Point site in BC, Canada Overview. Photo: courtesy of CNW Group/CNOOC Limited.
