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Making its foray into North America, IndianOil Corporation (IOC) has signed a deal to buy a 10 per cent stake in natural gas assets and a linked liquefied natural gas project in North East British Columbia, Canada, for about $900 million (₹5,500 crore).
The Indian refiner has signed the deal through its subsidiary IndOil Montney with Petronas Carigali Canada, part of Malaysia’s Petronas, it said on Friday.
This investment would provide IOC an opportunity to secure upstream participation in the highly prospective Montney play in Canada, along with securing long-term gas supply through the Pacific NorthWest LNG export facility for India’s growing requirements.
“IOC will have access to assured LNG supply of 1.2 million tonnes per annum (mtpa) for 20 years from the integrated project. This LNG will partly meet the requirement of IOC’s coming 5 mtpa Ennore re-gasification terminal in Tamil Nadu,” said RS Butola, Chairman of the Government-owned company.
JAPEX Montney (10 per cent) and Petroleum BRUNEI (3 per cent) are the other partners in the project. Petronas will hold the remaining 77 per cent.
The total reserves and resource potential is in excess of 50 trillion cubic feet of natural gas equivalent (Tcfe) in which, IOC’s share will be over 5 Tcfe.
Currently, Progress Energy Canada is producing about 400 million cubic feet equivalent of natural gas a day in North East British Colombia that is supplied to the Canadian market.
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