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.