State-owned Indian Oil Corporation (IOC) signed a deal worth $4 billion to source liquefied natural gas from the Canadian province of British Columbia.
In March this year, Petronas Carigali Canada, Progress Energy Canada, and Pacific NorthWest LNG, signed transaction agreements whereby Indian Oil Corporation, through its affiliates, acquired a 10 per cent interest in Progress Energy’s LNG-destined natural gas reserves in northeast British Columbia and in the proposed PNW LNG export facility on Canada’s West Coast.
As part of the transaction, Indian Oil has also agreed to off-take 1.2 million tons of liquefied natural gas (LNG) per annum, which represents 10 percent of the LNG facility’s production, for a minimum period of 20 years.
The Canadian asset is expected to produce as much as 19.68mt of LNG a year for 25 years starting from 2018.
Commenting on the investment, Premier of British Columbia Christy Clark said that GMR Group of India and IC-Impacts of her province would work together on safe and sustainable infrastructure such as innovative pavement technology, construction design and waste water infrastructure.
“We, in British Columbia, would like to partner with this great country to realise its potential by providing LNG to power its future. We recognise that there will be a mix of energy sources — coal, oil, solar, wind,” she said.
“India needs a million skilled workers a year for the next 15 years. We can help. If we can help train 3,000 and 300 of them help us build an LNG industry — it’s good for you and good for us.”
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