PETRONAS & Progress Announce the Next Phase of LNG Export Project

PETRONAS & Progress Announce the Next Phase of LNG Export Project 
Project Moving into the Pre-FEED Phase 
CALGARY, Dec. 4, 2012 /CNW/ - PETRONAS Carigali Canada Ltd. (PETRONAS) and 
Progress Energy Resources Corp. (Progress) today announced that their proposed 
LNG export facility is moving into the next phase of engineering. The 
project's detailed feasibility study for a LNG export facility on Lelu Island 
in the District of Port Edward has been successfully completed and the project 
is moving into the pre front-end engineering design (Pre-FEED) phase. The 
Pre-FEED phase will be undertaken to provide certainty around project scope 
and a further understanding of construction timelines, costs and labour force 
requirements. 
"We are excited to have completed the Detailed Feasibility Study phase and are 
now moving into the next phase of our engineering work, which will include the 
submission of our project description to Canadian regulators in early 2013," 
said Michael Culbert, President and CEO, Progress. "In addition, we are 
pleased to have officially named our project Pacific Northwest LNG and will 
continue to move the project forward at an aggressive pace." 
The project will include two trains, or liquefaction plants, when initially 
constructed. Planning will include the ability to expand with the addition of 
a third train in the future. The LNG throughput is currently designed for 
about 3.8 million tonnes per annum per train based on the LNG Export Joint 
Venture that was announced between the two companies in 2011. 
If the proposed acquisition of Progress by PETRONAS, that is currently being 
reviewed by the federal government is approved, the throughput of natural gas 
at the LNG export facility is expected to increase by approximately 60 per 
cent to 6 million tonnes per annum per train which will also result in 
concurrent enhancements to the productivity and efficiency of related upstream 
activities. 
Overall, Pacific Northwest LNG represents significant revenue and royalties to 
the provincial and federal governments, and the opportunity for economic 
benefits to the local First Nations and communities. A final investment 
decision for the project continues to be expected in late 2014, followed by 
the first LNG exports in 2018. 
Pacific Northwest LNG will be opening its Vancouver, British Columbia office 
in early 2013 and will be growing its project team. 
If Pacific Northwest LNG proceeds, the estimated investment in the LNG export 
facility is expected to be between $9 billion and $11 billion, depending on 
the final project scope. The construction phase would result in up to 3,500 
direct jobs and the long-term operations of the facility would result in 200 
to 300 direct jobs. 
More information, including a project backgrounder, is available at 
www.pacificnorthwestlng.com. 
About PETRONAS
PETRONAS is the national oil and gas company of Malaysia. Incorporated in 1974 
the company, ranked among the most profitable among the Fortune Global 500 
entities, is engaged in the oil, gas and petrochemicals industries with 
strategic business assets and interests in more than 30 countries. It is one 
of the world's leading LNG companies and is fully involved in every value 
chain of the LNG business, from liquefaction and shipping to re-gasification 
and trading. Apart from its Malaysian production facility, currently one of 
the world's largest, PETRONAS also owns interests in LNG assets in Australia 
and Egypt. 
About Progress 
Progress is a Canadian energy company focused on exploration, development and 
production of large, unconventional natural gas resources in northeast British 
Columbia and northwest Alberta. Progress holds the largest acreage position in 
the Montney shale gas play. Throughout its history, Progress has a solid track 
record of growing reserves, production and the underlying value of the company 
for its shareholders. 
Advisory Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking 
information within the meaning of applicable securities laws. The use of any 
of the words "expect", "anticipate", "continue", "estimate", "objective", 
"ongoing", "may", "will", "project", "should", "believe", "plans", "intends" 
and similar expressions are intended to identify forward-looking information 
or statements. In particular, forward looking statements in this press release 
include, but are not limited to, plans regarding Progress' Pacific Northwest 
LNG project and the benefits to be obtained therefrom, including: the pace of 
project development; the number of liquefaction plants to be included in the 
project; anticipated capacity levels; anticipated increases in capacity levels 
as a result of the completion of the announced transaction between Progress 
and PETRONAS; the benefits to be obtained by the provincial and federal 
governments, local First Nations and communities and others as a result of the 
project; the timing for the final investment decision; the timing of 
anticipated project completion; plans to open a project office in Vancouver 
and the timing thereof; plans to increase the project team; estimated total 
project costs; and the number of jobs created for project construction and 
long-term operations. 
The forward-looking statements and information are based on certain key 
expectations and assumptions made by Progress and PETRONAS, including, among 
other things, expectations and assumptions concerning prevailing commodity 
prices and exchange rates, applicable credits, royalty rates and tax laws; the 
performance of existing wells; the success obtained in drilling new wells; the 
sufficiency of budgeted capital expenditures in carrying out planned 
activities; receipt of all required regulatory approvals; and the availability 
and cost of labour and services and future operating costs. Although Progress 
believes that the expectations and assumptions on which such forward looking 
statements and information are based are reasonable, undue reliance should not 
be placed on the forward looking statements and information because Progress 
can give no assurance that they will prove to be correct. 
Since forward-looking statements and information address future events and 
conditions, by their very nature they involve inherent risks and 
uncertainties. Actual results could differ materially from those currently 
anticipated due to a number of factors and risks. These include, but are not 
limited to, the risk that the Pacific Northwest LNG project is not completed 
on the terms described or at all; delays or changes in plans with respect to 
the project; failure to receive all required regulatory approvals; failure to 
realize the anticipated benefits of the Pacific Northwest LNG project; and 
changes in legislation, including but not limited to tax laws, royalties and 
environmental regulations; the risk that the transaction between Progress and 
PETRONAS may not close when planned or at all or on the terms and conditions 
set forth in the arrangement agreement. 
Readers are cautioned that the foregoing list of factors is not exhaustive. 
Additional information on these and other factors that could affect the 
operations or financial results of Progress are included in reports on file 
with applicable securities regulatory authorities and may be accessed through 
the SEDAR website (www.sedar.com). 
Management has included the above summary of assumptions and risks related to 
forward-looking information provided in this press release in order to provide 
security holders with a more complete perspective on Progress' future 
operations in respect of the Pacific Northwest LNG project and such 
information may not be appropriate for other purposes. Progress' actual 
results, performance or achievement and the benefits to be derived from the 
project could differ materially from those expressed in, or implied by, these 
forward-looking statements and, accordingly, no assurance can be given that 
any of the events anticipated by the forward-looking statements will transpire 
or occur, or if any of them do so, what benefits that Progress and others will 
derive there from. Readers are cautioned that the foregoing lists of factors 
are not exhaustive. These forward-looking statements are made as of the date 
of this press release and Progress disclaims any intent or obligation to 
update publicly any forward-looking statements, whether as a result of new 
information, future events or results or otherwise, other than as required by 
applicable securities laws. 
Progress Energy Resources Corp. Michael Culbert President & CEO 403-216-2510 
Media Kelly Sinclair NATIONAL Public Relations 403-531-0331 
SOURCE: Progress Energy Resources Corp. 
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CO: Progress Energy Resources Corp.
ST: Alberta
NI: OIL  
-0- Dec/04/2012 13:47 GMT
 
 
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