Progress Energy Canada and PETRONAS close LNG investment transaction with Japan Petroleum Exploration Co. Ltd. and secure first LNG Buyer

Apr 29, 2013

CALGARY, April 29, 2013 /CNW/ – Progress Energy Canada Ltd., Pacific
NorthWest LNG Ltd. and Petroliam Nasional Berhad (PETRONAS) have closed
the previously announced transaction that saw JAPEX Montney Ltd., the
Canadian subsidiary of Japan Petroleum Exploration Co. Ltd. (“JAPEX”),
acquire a 10 percent interest in Progress Energy Canada’s natural gas
assets in northeast British Columbia and in the proposed Pacific
NorthWest LNG export facility on Canada’s West Coast near Prince
Rupert, British Columbia. As part of the transaction, JAPEX has agreed
to buy a 10 percent share of the liquefied natural gas (LNG) facility’s
production for a minimum of 20 years for domestic use in Japan.

“This JAPEX investment in upstream natural gas resources in British
Columbia and the downstream LNG facility further solidifies the North
Montney as a world-class natural gas asset, and it clearly defines
British Columbia and Canada as attractive and competitive destinations
for global investment,” said Michael Culbert, President & CEO of
Progress Energy Canada. “It also affirms the confidence in PETRONAS as
a world class developer of LNG Projects. Progress has increased its
development pace in northeastern British Columbia in 2013, building new
capacity to supply Pacific NorthWest LNG with abundant Canadian natural
gas for export beginning in late 2018. The LNG sale to JAPEX is the
first of several LNG sale transactions that are being negotiated with
LNG Buyers in Asia.”

About Progress Energy Canada
Progress Energy Canada, a leader in Canadian natural gas development, is
building upon its history of performance excellence in North America to
pioneer new infrastructure for delivering LNG to Pacific Rim markets.
Producing more than 300 million cubic feet equivalent of natural gas
per day in northeast British Columbia and northwest Alberta, Progress
is serving Canadian markets and ambitiously expanding productive
capacity on its large Montney land holdings in preparation for the
opening of new LNG markets in Asia. Progress is wholly owned by
PETRONAS of Malaysia, a global leader in LNG and the principle owner of
Vancouver-based Pacific NorthWest LNG Ltd. Progress and Pacific
NorthWest LNG are helping craft a bright new future for Canada’s energy
exports.

About Pacific NorthWest LNG
Pacific NorthWest LNG is planning to build a world-scale LNG export
facility on Canada’s West Coast at Lelu Island near Prince Rupert,
British Columbia. The proposed facility will comprise an initial
development of 2 LNG trains of 6 mtpa each and a subsequent development
of a third train of 6 mtpa. The proposed facility would liquefy and
export natural gas produced by Progress Energy Canada in northeastern
British Columbia. Pacific NorthWest LNG is committed to generating new
economic and social benefits for the local community, British Columbia
and Canada in an environmentally safe and sustainable manner. Pacific
NorthWest LNG is principally owned by PETRONAS of Malaysia.

Bank of America Merrill Lynch acted as financial advisor and Norton Rose
Calgary acted as legal advisor to PETRONAS in connection with the
transaction.

SOURCE: Progress Energy Canada Ltd.