IOC signs pact with Progress Energy
Mumbai   10-Mar-2014

Indian Oil Corporation Limited (IOCL) through its wholly owned affiliate IndOil Montney Ltd, Canada have signed transaction agreements with Progress Energy Canada Ltd. (Progress Energy Canada), PETRONAS Carigali Canada BV (PCC BV )wholly owned affiliates of Petroliam Nasional Berhad (PETRONAS) for the acquisition of a 10 percent interest in Progress Energy Canada’s LNG-destined natural gas reserves in northeast British Columbia and in the proposed Pacific NorthWest LNG Ltd. (PNW LNG) export facility on Canada’s West Coast. As part of the transaction, Indian Oil Corporation Ltd. shall also offtake 1.2 million tons of liquefied natural gas (LNG) per annum (MMTPA), which represents 10 percent of the LNG facility’s production, for a minimum period of 20 years. R. S. Butola, Chairman of IOCL said, “This transaction provides an excellent opportunity for IOCL to secure upstream participation in the highly prospective Montney play in Canada, along with securing long-term LNG supply for India’s growing gas requirements. IOCL will have access to assured LNG supply of 1.2 MMTPA for a minimum period of 20 years from the PNW LNG Integrated Project. This LNG will partly meet the requirement of IOCL's upcoming 5 MMTPA Ennore regasification terminal in Tamil Nadu.”