Kuala Lumpur: Petroliam Nasional Bhd (Petronas) has confirmed its continued commitment to its operations in Canada, dismissing any speculation about exiting the region. Group CEO Tan Sri Tengku Muhammad Taufik Tengku Aziz stated that Canada remains a critical component of Petronas’ strategic interests, emphasizing that the company is not planning to withdraw from the resource-rich country.
According to BERNAMA News Agency, Tengku Muhammad Taufik highlighted the impending commencement of liquefied natural gas (LNG) shipments from Canada, with the first cargo expected in the coming weeks. This development marks a significant step in Petronas’ ongoing strategy to leverage Canada’s geographical advantages for LNG exports, particularly to markets in Japan, South Korea, Taiwan, and China. The CEO noted that these routes provide a buffer against geopolitical tensions affecting other LNG pathways.
Petronas is keen on engaging in more dialogues with the Canadian government to further its LNG initiatives, which it views as pivotal for offering cleaner energy solutions worldwide. Tengku Muhammad Taufik expressed hope that the new Canadian administration would support these efforts, underscoring the importance of maintaining and expanding Petronas’ market share in the LNG sector.
When questioned about potential asset liquidation or diversification, Tengku Muhammad Taufik stated that Petronas would continue to streamline its operations. The company’s recent divestment in Argentina was a strategic move, as Petronas found it challenging to optimize its assets there. In April, Vista Energy acquired Petronas’ 50 percent stake in the La Amarga Chica oil field in Argentina’s Vaca Muerta shale basin for approximately US$1.5 billion.
Vista Energy, the second-largest crude oil producer in the region, agreed to pay US$900 million upfront, with one-third financed by Banco Santander SA, while the remaining amount will be settled in installments by 2029 and 2030. This transaction underscores Petronas’ focus on asset rationalization to ensure operational efficiency and strategic alignment with its global objectives.