Petronas/Progress takeover bid approved by Federal Government

A decision that will provide for much anticipation on the Northwest was announced on Friday, as the Federal Government approved two controversial takeover bids from foreign sources, one of could have a major impact on development on the North Coast.

Friday the Federal Government gave the go ahead to CNOCC and Petronas to move forward with their respective takeover plans, in the case of Petronas that will mean that their planned purchase of Progress Energy now will move ahead, a decision that will provide for an even larger LNG terminal for Prince Rupert/Port Edward.

Earlier in the week Petronas and Progress announced that they were going forward with their joint venture project to develop an LNG plant on Lelu Island near Ridley Island, at the time of that announcement they offered out the carrot of further development in the province's north east gas fields and more importantly for Prince Rupert, a further expansion of their planned Terminal.

Some of the reviews of the Federal approval of the Petronas takeover can be found below.

Ottawa approves Nexen and Progress takeover deals
Ottawa struck right balance on foreign takeovers, say energy industry players
Canada toughens oil sands investment as Nexen, Progress takovers approved
Canadian government approves foreign takeover bids of Nexen, Progress
Note to foreign firms: We'll take your cash, but keep your promises
Ottawa approves Nexen, Progress foreign takeovers
Nexen, Petronas approvals seen as new openness to offshore investment
Nexen, Progress scrutiny unlikely to deter foreign firms
Government OK's foreign bids for Nexen, Progress Energy
Harper draws a line in the oilsands, for now
Progress, Petronas say government approval of takeover was vital to expansion
Government approves CNOCC-Nexen and Petronas-Progress takeover bids

With the takeover approval now in hand, one imagines that for Petronas the larger project on Lelu Island will move forward and with it the expanded development both in Prince Rupert and in the Northeast part of the province..

Petronas/Progress have developed a website for the Pacific Northwest LNG project, which outlines the scope of the planned development, which will provide for 3,500 jobs in construction at its peak period.

Towards that end, Pacific Northwest LNG provided some background on their plans, which it is anticipated will require what is called a construction accommodation campus to be built on Lelu Island, providing for a self contained work and living environment. With eating, recreation and living quarters to be part of the campus.

Upon completion the export will provide 200 to 300 permanent direct jobs as well as number of indirect jobs in the community.

The company also advised that it plans to invest in local skills training for the jobs that will be required to operate the export facility.

With the Federal governments approval, the larger footprint of the estimated 11 billion dollar project could be on the horizon, all that remains for the local population is to learn of the timetable of development and when perhaps, the skills training is set to go.

The final investment decision is set for late 2014, with the first shipment out of the Lelu Island terminal sometime in 2018.

With the project moving forward however, the sense of yet another step forward in the diversification of the local economy seems close at hand. With anticipated benefits that should ripple through the region.