Japan Petroleum Exploration Co. announced they reached an agreement with Petroliam Nasional Berhad (Petronas) to buy a stake in Petronas' Canadian natural gas development and production project. The company, known as Japex, also said they will participate in a liquefied natural gas project on the western coast of British Columbia.
Japex said they will acquire a 10 percent interest in the natural gas blocks located in North Montney, which is expected to be built on the Port of Prince Rupert. Japex bought another 10 percent stake of the Pacific Northwest LNG Project located on Lelu Island within the District of Port Edward.
Bloomberg reported the LNG plant is expected to cost as much as $10.7 billion and have an annual capacity of 12 million metric tons. Japex said it will purchase about 1.2 million tons of LNG annually from the plant and ship it to Japan.
Japan is the world's largest LNG importer and has followed other companies who have invested in North American shale gas field to meet the country's growing energy demands, according to Bloomberg.