Japanese firm newest member in proposed Petronas LNG project

Looking to improve its competitiveness, the Japanese chemicals firm MGC hopes to use imported LNG from Canada as feedstock for its plants in Japan.

MGC has set up a wholly owned subsidiary to acquire a ten per cent share in Japex Montney, which already holds a ten per cent stake in the $36 billion proposed project led by Malaysia’s state owned oil firm, Petronas.

For half a century now, MGC has worked with upstream Japanese firms like Japex in areas of natural gas exploration.

With the $92 million acquisition, MGC is committing to the Pacific Northwest LNG project despite the delay in a final investment decision, largely attributed to the falling price of crude oil.

Petronas has 62 per cent of the project – which had an original start up date of late 2018 – and now has other international stakeholders, with interests of 3 – 15 per cent in China, Japan, India and Brunei.