How Thai-Belgian bridge of friendship was built

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Former Belgian ambassador to Thailand Baron Patrick Nothomb, right, meets with former minister Chavarat Charnvirakul in Bangkok over the weekend.
Former Belgian ambassador to Thailand Baron Patrick Nothomb, right, meets with former minister Chavarat Charnvirakul in Bangkok over the weekend.

How Thai-Belgian bridge of friendship was built

ASEAN+ June 04, 2018 01:00

By SUPALAK GANJANAKHUNDEE
THE NATION

FORMER Belgian Ambassador to Thailand Baron Patrick Nothomb was in the same room with former minister Chavarat Charnvirakul at the Silom residence of the Belgian Ambassador on Saturday as he recalled the building of the Thai-Belgian Bridge, the first fly-over bridge to ease traffic congestion in Bangkok 30 years ago.

The capital city of Bangkok has been infamous for its traffic congestion since the Thai economy took off in the late 1980s.

Nothomb, who was the Belgian ambassador to Bangkok between March 1985 and October 1988, recalled the suggestion made by his then commercial attache to offer Bangkok an iron bridge that had been dismantled in Brussels. He managed to convince the Belgian government that it would be good for relations to ship the for the 2,000-tonne iron bridge from its home to Bangkok.

The bridge when it was in Brussels before being dismanteled and removed to Bangkok in late 1980s. 

The next major challenge was how to quickly install the heavy structure across the Rama IV and Sathorn-Wireless Road intersection, since the traffic condition there was already the city’s worst. A long construction period would cause repercussions.

Chavarat, who runs the Sino-Thai construction firm, made it possible. “I was here in this room for a kind of reception party and the ambassador called me and said, ‘Khun Chavarat can do it’,” he said. “I took the job and spent only a weekend holiday for the bridge erection.”

Nothomb said, “I was very anxious and excited if it would be done on time, as we had already invited HRH Princess Maha Chakri Sirindhon to inaugurate the bridge.”

The erection work began at 6pm on Friday, April 23, 1988 and finished 56 hours later, 4 hours earlier than scheduled, Chavarat said.

The Thai-Belgian bridge later became not only the role model for how to ease congestion at many intersections in the capital as the Bangkok authority erected eight additional bridges in the 1990s, but also a symbol of diplomatic relations that saw Japan donate a viaduct along the traffic axis in 1989.

The Thai-Belgian Bridge has stood as a symbol of the relations between the two countries since then, and this year authorities have decorated the bridge to commemorate its 30th anniversary and the 150th anniversary of diplomatic relations between the two countries, according to Belgian Ambassador to Thailand Philippe Kridelka.

In order to commemorate the 150th anniversary of ties, the embassy, with collaboration from many agencies of government and non-government organisations, has organised seminars and workshops on various issues.

The first workshop was on LGBT issues and held in February, as Thailand seeks a legal instrument to handle the issue and Belgium has particular experience with same-sex marriage, Kridelka said. Two workshops are to be held in November on road safety and smart cities to exchange knowledge and views, he said.

The road safety workshop would look at how children could be encouraged to wear helmets while sitting on a motorbike, he said, noting that Belgian company Solvey every year contributes helmets to schools to raise awareness.

To forge cooperation for human resource development, Thammasat University and The Katholieke Universiteit Leuven have signed an agreement to kick off next year a programme in which 20 young Thai engineers will be chosen yearly to go to Leuven and continue their training as engineers. “We hope that when they come back to Thailand they will contribute to economic development,” he said.

US troop presence in S. Korea not ‘on table’ at Trump-Kim summit: Mattis

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US Defence Secretary James Mattis talks to delegates before delivering his first plenary session of the 17th Asian Security Summit of the IISS ShangriLa Dialogue in Singapore on June 2, 2018./AFP
US Defence Secretary James Mattis talks to delegates before delivering his first plenary session of the 17th Asian Security Summit of the IISS ShangriLa Dialogue in Singapore on June 2, 2018./AFP

US troop presence in S. Korea not ‘on table’ at Trump-Kim summit: Mattis

ASEAN+ June 02, 2018 10:13

By Agence France-Presse
Singapore

The issue of US troops stationed in South Korea will not be “on the table” at a summit between President Donald Trump and North Korea’s Kim Jong Un, US Defense Secretary Jim Mattis said Saturday.

“That issue is not on the table here in Singapore on the 12th (of June), nor should it be,” he said at the Shangri-La Dialogue, a security summit in Singapore, referring to the scheduled date of the Trump-Kim meeting.

There are currently some 28,500 US forces based in the South.

Trump said Friday he will meet Kim for the historic summit as originally scheduled after extraordinary Oval Office talks with a top envoy from Pyongyang.

Trump told reporters that denuclearisation — and a formal end to the decades-old Korean war — would be on the table in Singapore.

However, Mattis stressed that “any discussion about the number of US troops in the Republic of Korea is subject to… the Republic of Korea’s invitation to have them there, and the discussions between the United States and the Republic of Korea, separate and distinct from the negotiations that are going on with DPRK (North Korea).

“That issue will not come up in the discussion with DPRK.”

But he added: “Obviously if the diplomats can do their work, if we can reduce the threat, if we can restore confidence building measures with something verifiable, then of course these kinds of issues can come up subsequently between (South Korea and the US).”

Last month, South Korean President Moon Jae-in dismissed claims that US troops stationed in the country — based on Seoul’s alliance with Washington — would have to leave if a peace treaty was signed with the North.

Trump puts N. Korea summit back on for June 12

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US President Donald Trump and North Korean envoy Kim Yong Chol (L) exit the Oval Office following a meeting at the White House on June 1, 2018 in Washington, DC./AFP
US President Donald Trump and North Korean envoy Kim Yong Chol (L) exit the Oval Office following a meeting at the White House on June 1, 2018 in Washington, DC./AFP

Trump puts N. Korea summit back on for June 12

Breaking News June 02, 2018 09:14

By The Korea Herald
Asia News Network
WASHINGTON

US President Donald Trump on Friday put a summit with North Korean leader Kim Jong-un back on for June 12 following weeks of uncertainty over whether it would take place.

Trump said after meeting with a senior North Korean official at the White House that the summit will go ahead in Singapore to discuss the dismantlement of the North’s nuclear weapons program.

US President Donald Trump speaks with Kim Yong-chol, vice chairman of the central committee of North Korea`s ruling Workers` Party, at the White House on Friday. Yonhap

“We’ll be meeting on June 12th in Singapore,” Trump told reporters on the White House grounds after seeing off Kim Yong-chol, a close aide to the North Korean leader.

“And I think it’ll be a process. I never said it goes in one meeting. I think it’s going to be a process. But the relationships are building, and that’s a great positive.”

The two sides have been at odds over how far North Korea will go to dismantle its nuclear weapons program and what security guarantees the regime would receive in return.

The US wants to see the North quickly and “irreversibly” dismantle the program before providing significant concessions, but the North has rejected “unilateral” abandonment.

“I think they want to do that. I know they want to do that,” Trump said when asked if North Korea is serious about denuclearizing.

“They want other things along the line. They want to develop as a country. That’s going to happen, I have no doubt.”

Still, he refused to say whether the North agreed to the US demand for complete, verifiable and irreversible denuclearization.

“We talked about a lot of things. We really did,” he said. “But the big deal will be on June 12th. And again it’s a process … we’re not going to go in and sign something on June 12th, and we never were. We’re going to start a process.”

The US president said he told the North Korean delegation that they could take their time.

“We can go fast. We can go slowly. But I think they’d like to see something happen, and if we can work that out, that’d be great,” he said.

Kim Yong-chol, the top North Korean to enter the White House in nearly two decades, traveled from New York following two days of meetings with US Secretary of State Mike Pompeo on a possible summit between their leaders.

Pompeo said after the meetings that “real progress” was made toward “setting the conditions” for a summit, but he also said there remains “a great deal of work to do.”

The US president said the North Korean official handed him a “very nice” and “very interesting” letter from Kim, but later added that he hadn’t opened it.

“I didn’t open it in front of the director,” Trump said.

“I said, ‘Would you want me to open it?’ He said, ‘You can read it later.’ I may be in for a big surprise, folks.”

Trump called off the summit in an open letter to Kim last week, citing “open hostility” from the regime. Following a conciliatory statement from the North, he put the summit back on track, and officials from both sides have been continuing meetings on the inter-Korean border as well as in Singapore to hammer out the substantive and logistical details.

On Friday Trump said he doesn’t want to use the term “maximum pressure” anymore, a term his administration has coined to describe its sanctions campaign against Pyongyang.

There were “hundreds of new sanctions ready to go,” he said, but they won’t be imposed “until the talks break down.” Trump added that he looks forward to the day the sanctions can be lifted.

His words mark a turnaround from last year when he engaged in a war of words with Kim over the regime’s testing of nuclear weapons and ballistic missiles. Fears of war escalated as Trump threatened to “totally destroy” the regime and the North responded with a threat to detonate a hydrogen bomb over the Pacific Ocean.

A mood for reconciliation set in this year after Kim Jong-un expressed an interest in sending a delegation to the PyeongChang Winter Olympics in South Korea in February.

At a historic summit in April, South Korean President Moon Jae-in and Kim agreed to pursue “complete denuclearization” and a formal end to the 1950-53 Korean War. The conflict ended in an armistice, not a peace treaty, leaving the North technically at war with both the South and the US.

Trump said the issue could be discussed at his meeting in Singapore.

“We talked about it. We talked about ending the war,” he said.

“That’s something that could come out of the meeting. I think, really, that’s something that maybe could come out of the meeting.”

North Korea’s abysmal human rights record could also be addressed

“Could be, yes, could be,” Trump said. “I think we probably will, and maybe in great detail. We did not talk about human rights (today).”

Kim Yong-chol, vice chairman of the central committee of North Korea’s ruling Workers’ Party, is the highest-ranking North Korean to visit the US since 2000.

That year Vice Marshal Jo Myong-rok visited the White House and met with then President Bill Clinton.

Kim is under US sanctions for his alleged role in North Korea’s nuclear weapons program and other illicit activities, including the 2010 sinking of a South Korean warship that killed 46 sailors.

Mattis accuses China of ‘intimidation and coercion’ in S. China Sea

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US Defence Secretary James Mattis delivers his speech during the first plenary session of the 17th Asian Security Summit of the IISS ShangriLa Dialogue in Singapore on June 2, 2018. / AFP PHOTO / ROSLAN RAHMAN
US Defence Secretary James Mattis delivers his speech during the first plenary session of the 17th Asian Security Summit of the IISS ShangriLa Dialogue in Singapore on June 2, 2018. / AFP PHOTO / ROSLAN RAHMAN

Mattis accuses China of ‘intimidation and coercion’ in S. China Sea

Breaking News June 02, 2018 08:22

By Agence France-Presse
Singapore

China’s military buildup in the South China Sea and its deployment of high-end weapons systems in the disputed waterway is designed to intimidate and coerce neighbours, US Defense Secretary Jim Mattis said Saturday.

Speaking at a high-profile security summit in Singapore, the Pentagon chief also said the US military continues to support diplomats pushing for the “complete, verifiable and irreversible” denuclearisation of the Korean peninsula.

Mattis said Beijing had deployed a range of military hardware — including anti-ship missiles, surface-to-air missiles and electronic jammers — across the South China Sea, where it has built islets and other maritime features into hardened military facilities.

Beijing has also landed heavy bombers on Woody Island in the Paracel Islands.

“Despite China’s claims to the contrary, the placement of these weapon systems is tied directly to military use for the purposes of intimidation and coercion,” Mattis told the Shangri-La Dialogue.

Trump brushes norms aside to welcome North Korean envoy

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US President Donald Trump (R) poses for photographs with North Korean Kim Yong Chol at the White House on June 1, 2018 in Washington,DC. /AFP
US President Donald Trump (R) poses for photographs with North Korean Kim Yong Chol at the White House on June 1, 2018 in Washington,DC. /AFP

Trump brushes norms aside to welcome North Korean envoy

Breaking News June 02, 2018 07:43

By Agence France-Presse
Washington

US President Donald Trump all but rolled out the red carpet for a top North Korean official Friday, casting protocol aside and embarking on a characteristically high-stakes gamble.

A jet black US government Chevrolet Suburban rolled through the South West gate of the White House, up the scorching driveway and pulled to halt.

Hurriedly, and slightly anxiously, a phalanx of wiry North Korean security personnel disgorged — one accidently closing the door on his colleague in the rush.

Then exited the more composed, much smaller and slightly less trim figure of Kim Yong Chol.

Spymaster, military general, envoy and apparatchik, the 72-year-old had become the most senior North Korean official to set foot at the White House in two decades.

Standard protocol would suggest an official of his rank — particularly one who is under sanction and who represents a geopolitical adversary — would be whisked, out of sight, into the bowels of the building for a closed door meeting.

Not in Trump’s White House.

A fellow general was on hand to greet him — John Kelly, President Donald Trump’s chief of staff — who escorted him along the White House colonnade and into the Oval Office for a presidential meeting, a rare honor for a non-head of state, much less one from a brutal regime.

White House aides had expected the sit-down with the president, if it happened, to be short, just long enough to exchange pleasantries and a letter from North Korean dictator Kim Jong Un.

“That is something that had been considered from the beginning” one White House official said. “The president wanted to keep his options open.”

In the end it ran almost 90 minutes. “We talked about almost everything. We talked about a lot,” said Trump.

“It went very well. It’s really a get-to-know-you kind of a situation.”

Kim’s White House visit was not on the official presidential schedule, but had been rumored for days.

Then, shortly after midday, a small group of White House pool reporters — including AFP — received a cryptic email to meet at a designated point for an unspecified reason in seven minutes.

If allowing coverage of Kim’s arrival was designed to send a signal, so too was the decision about who participated for the US side.

As Kim arrived, peering through a nearby glass door, was the familiar silvery mustache of John Bolton, Trump’s hawkish national security advisor.

Having offended North Korea with comments that hinted at regime change, he largely stayed away from the cameras and stayed out of the Oval meeting, aides said.

A White House official cautioned against reading too much into Bolton’s absence, but you can be certain Pyongyang got the message: Trump wants to play nice.

The president underscored that message again and again, when he was asked whether his campaign of “maximum pressure,” which included sanctions and threats of annihilation, was over.

“I don’t even want to use the term ‘maximum pressure’ anymore because I don’t want to use that term because we’re getting along,” Trump said. “You see the relationship. We’re getting along.”

“We had hundreds of new sanctions ready to go on,” he added. “I’m not going to put them on until such time as the talks break down.”

Trump even admitted that he had not raised the issue of human rights, as he said he was looking forward to the Singapore summit with Kim Jong Un.

But as he stood side-by-side smiling with Kim Yong Chol outside the Oval Office, before waiving him goodbye, there was a small but poignant reminder of the scale of Trump’s task.

On Kim’s chest, just in front of his heart, sat a red flag pin featuring images of Kim Jong Il and Kim Il Sung, the previous two leaders of the Kim dynasty and the current leader’s father and grandfather.

One started North Korea’s nuclear program, the other refused to give it up.

Trump is betting he can make a deal and that North Korea’s current ruler will break with decades old family tradition. Friday’s meeting showed he is willing to stake America’s reputation on it.

South China Sea militarisation high on Shangri La Dialogue agenda

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Vietnam's Defence Minister Ngo Xuan Lich attends the Shangri-La Dialogue in Singapore from June,1- 3
Vietnam’s Defence Minister Ngo Xuan Lich attends the Shangri-La Dialogue in Singapore from June,1- 3

South China Sea militarisation high on Shangri La Dialogue agenda

ASEAN+ June 02, 2018 01:00

By   THE NATION

VIETNAM WILL turn the spotlight on escalating militarisation in the contested South China Sea this weekend in Singapore as security officials from around the world gather to discuss international cooperation at the Shangri-La Dialogue 2018.

The Vietnamese delegation is led by Defence Minister Ngo Xuan Lich, who will address the third session, focusing on the changing security order in Asia, the state-run Vietnam News Agency reports.

The delegation would express its concern at military operations in the South China Sea and promote a mechanism for cooperation in resolving disputes and regional conflicts by peaceful means on the basis of international law, said a Vietnam delegation official.

Vietnam is among several Asean member states who are at loggerheads with China over territorial disputes in the sea. Hanoi has for years voiced concerns over militarisation in the disputed Paracel and Spratly islands, where China has built fortresses and reportedly installed missiles.

The three-day security and defence conference, held annually at the Shangri-La hotel since 2002, will also focus on nuclear tensions on the Korean peninsula, as Singapore prepares to host a summit between US President Donald Trump and North Korea’s leader Kim Jong-un on June 12.

The Shangri-La meeting features five sessions: on US leadership and the challenges of Indo-Pacific security; de-escalating the crisis in North Korea; shaping new dimensions of terrorism and counter-terrorism; and raising the bar for regional security co-operation.

The event also features side sessions covering such issues as new strategic technologies and the future of conflict, maritime security enhancement, strategic implications of military capability development in the Asia-Pacific and the management of competition in regional security cooperation.

US Defence Minister James Mattis will join the dialogue to offer his view on global and regional security matters.

Indian Prime Minister Narendra Modi, meanwhile, is attending the Shangri-La Dialogue for the first time, as his country seeks to carve a role in Indo-Pacific security arrangements.

New Delhi and Hanoi have forged closer ties in recent years as a balance against the rise of China’s influence in the region.

The Vietnam News Agency hailed the Shangri-La meet as a good opportunity for Hanoi to voice its views on regional security issues relating to “legitimate” national interests, towards achieving peaceful settlement of disputes in line with international law, especially the 1982 United Nations Convention on the Law of the Sea.

Vietnam govt aims to boost industry, construction

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Vietnam govt aims to boost industry, construction

ASEAN+ June 02, 2018 01:00

By VIET NAM NEWS
ASIA NEWS NETWORK
HANOI

THE VIETNAMESE Government aims for the industry and construction sector to account for 30-35 per cent of gross domestic product (GDP) by 2020, according to the country’s new plan for industrial restructuring in the 2018-20 period, signed by Deputy Prime Minister Trinh Dinh Dung.

The plan aims to realise the National Assembly’s resolution on restructuring the economy in the 2016-20 period, including the industry and construction sector.

The plan stipulates that the industrial growth rate must be higher than the GDP growth rate; the proportion of manufactured goods in the total export turnover should reach 85-90 per cent and labor in industry and construction should account for 25-30 per cent of all jobs.

The government aims for an annual average productivity growth rate in industry of over 5.5 per cent. It also seeks to narrow the gap between Vietnam and Asean-4 countries on indices of industrial competitiveness and increase the number of hi-tech industries in the manufacturing and private sectors. The plan also targets value-added growth in the manufacturing industry from 8 to 10 per cent.

In order to realise the above objectives, the government proposed the following key tasks and solutions.

Firstly, the application of advanced technology in production must be strengthened and industrial production must be linked with environmental protection and response to climate change. A roadmap to replace and eliminate obsolete equipment in factories must be built while polluting factories must be shut down.

Secondly, the value chain of products such as textiles, leather, footwear, chemicals, food and electronics must be upgraded to increase value-added and the ability to participate in the global production network must be enhanced in order to effectively exploit recent free trade agreements.

Thirdly, priorities should be given to develop the domestic steel industry; plants should use environmentally friendly technologies; small-scale steel mills and rolling mills, backward technologies and inefficient use of resources must be reduced and the sustainable use of energy must be promoted.

Lastly, trade promotion and brand development for Vietnam’s industrial products and industrial enterprises should be boosted.

Singapore, India to cut tariffs on 30 more items

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Singapore, India to cut tariffs on 30 more items

ASEAN+ June 02, 2018 01:00

By THE STRAITS TIMES
ASIA NEWS NETWORK
SINGAPORE

SINGAPORE and India will reduce or remove tariffs on a further 30 products, improve rules of origin and facilitate mutual recognition of nursing standards following the second review of the Comprehensive Economic Cooperation Agreement (CECA) between the two countries.

The conclusion of the review took place yesterday, Singapore’s Ministry of Trade and Industry (MTI) announced.

Following the new update, tariffs on 30 products will be reduced or eliminated to the level under the free trade agreement between India and the Association of South-east Asian Nations (Asean). The new preferential tariffs apply to a variety of sectors, including food and Nylon moulding powder.

Rules of origin will also become more flexible, allowing certain goods to qualify as Singapore-originating even when a limited amount of inputs used in production do not meet the change in tariff classification requirement.

New product specific rules, which are typically easier to meet than the general rule of origin, have also been created for goods such as machinery parts and edible oils. These will make it easier for Singapore exports into India to qualify for preferential tariffs, the MTI said.

Both countries have agreed on a mutual recognition agreement on nursing as well to facilitate better understanding of their standards in regulating the training and practice of nursing.

Minister-in-charge of Trade Relations S Iswaran said: “The upgraded agreement will enable more Singapore companies to qualify for lower tariffs. This improves local exporters’ access to the Indian market. I encourage our companies to make full use of the upgraded agreement and explore more opportunities for collaboration in India.”

CECA first came into force in 2005, and the first review concluded in 2007. Total bilateral trade between Singapore and India has grown from S$16.6 billion in 2005 to S$25.2 billion in 2017.

AEC Feed

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AEC Feed

ASEAN+ June 02, 2018 01:00

By Asia News Network

MOU signed for feasibility study on expressway

The Ministry of Public Works and Transport and China Yunnan Sunny Road and Bridge Company (YSRBC) signed a MOU to conduct a feasibility study of the Vientiane-Pakxe Expressway, Section: I from Pakxan district in Borikhamxay province to Thakhek district in Khammuan province over 164 km.

The document was signed on Tuesday by the ministry’s Road Department Director General Pheng Douangngeun and YSRBC’s Deputy General Manager Liu Faliang.

YRSBS is scheduled to begin work soon and will spend one year on the assignments after signing a contract with the ministry, the expressway project’s Coordinator Bounyavath |Nilaxay said during the signing ceremony.

After completing a survey and feasibility study by the company, Bounyavath stated that the government will allow them to invest in construction of the expressway, which will be a Build-Operate-Transfer (BOT) concession.

“The construction of the expressway is a priority pilot project of the government and it will attract more foreign investment and tourists to the country upon its completion,” Bounyavath said.

Liu said the construction of the new expressway will help develop the socio-economic growth of Laos and will assist the nation to connect with regional countries with the aim of turning the land-locked country into a hub of connection.

The expressway will be crucial to reducing traffic congestion and enabling faster and more efficient transport of goods and people. It will generate income for the country and benefit the local area in particular by helping to attract foreign investors to the region.

The road will be built to specifications laid down under Asean Expressway Standard Grade 1 and will be able to carry loads of up to 11 tonnes per axle.

The construction of the new expressway will be along National Road No 13 South and is being considered due to the growth of transportation moving between the central and southern parts of the country and also to boost economic growth in |Laos as well as other Asean member countries.

The 585-km expressway from the Vientiane to southern Champassak province will have four lanes, with a total carriageway width of 23 metres. – The Vientiane Times

Colombo Port records second highest growth

Among container Ports worldwide, Colombo’s growth rate is second only to the Port of Singapore.

The Port of Colombo recorded a 16.2 per cent growth in the first quarter of this year in comparison to the corresponding period last year , according to Alphaliner Monthly 2018.

Among container Ports worldwide, Colombo’s Growth rate is second only to the Port of Singapore which has recorded 16.5 per cent growth over 2017. It is also a very significant achievement when compared against Port of Colombo 2017 figures with 8.3 per cent growth of 2017 against |2016.

With this growth, the Port of Colombo has leaped ahead of many other major Asian and European ports and Dubai as well.

According to Alphaliner global port rankings the top growth rates in numerical order are Singapore ( 16.5 per cent ) , Port of Colombo ( 16.2 per cent) , Port of Xiamen , China (11.6 per cent) Antwerp , Belgium (10.7 per cent ) and Ningbo –Zhoushan, China ( 10.4 per cent ). – The Island

Bank Negara adds Kazuki coin to alert list

Bank Negara Malaysia has added Kazuki Coin to its list of companies and websites which are neither authorised nor approved under the relevant laws and regulations administered by the central bank.

In a statement posted on its website, Bank Negara said Kazuki Coin is in the latest list of 419 companies.

A check on the Kazuki Coin facebook claims that is a new era crypto currency. It touts itself as the “best crypto coin”.

Kazuki Coin stated that all transactions, which are managed by Kazuki Management, are safe, secure and trustful.

It is alleged to have started trading early 2016 and it claims to have its own block chain. – The Star

Petronas buys into C$40 bn project

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Petronas buys into C$40 bn project

ASEAN+ June 02, 2018 01:00

By THE STAR
ASIA NEWS NETWORK
PETALING JAYA

MALAYSIA’S Petroliam Nasional (Petronas) is set to become the second-largest partner in a massive liquefied natural gas (LNG) project in British Columbia province after striking a deal to buy 25 per cent of LNG Canada.

The deal for the LNG Canada project, which reportedly will cost up to C$40 billion for the construction of an export terminal and related infrastructure, marks an about turn for the national oil and gas company.

In July 2017, it scrapped plans to invest in the C$36 billion Pacific NorthWest LNG gas pipeline project in British Columbia, due to prolonged depressed prices and unfavourable market conditions for the energy industry then.

Petronas’ announcement yesterday that its wholly owned entity, the North Montney LNG Ltd Partnership (NMLLP), had entered into a sales and purchase agreement for an equity position in the LNG Canada project, in Kitimat, came amid improving energy prices and an increasingly healthier market outlook for the oil and gas sector.

“It is anticipated that the transaction will achieve completion in the next few months,” Petronas said in a statement. The LNG Canada project, which reportedly costs of up to C$40 billion for the construction of an export terminal and related infrastructure, is led by Royal Dutch Shell plc (Shell) as the largest partner.

Petronas said that upon completion of the deal, it would be the second-largest partner in LNG Canada project with a 25 per cent stake through NMLLP after Shell.

Shell, through its subsidiary Shell Canada Energy, would have a 40 per cent stake in the project.

Other stakeholders – PetroChina Canada Ltd; Diamond LNG Canada Ltd, a subsidiary of Mitsubishi Corp; and Kogas Canada LNG Ltd would each have a 15 per cent stake in the project. Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said the group, in seeking to build a long-term presence in Canada, would continue to explore other opportunities in the country.

“Petronas is in Canada for the long term and we are exploring a number of opportunities that will allow us to increase our production and accelerate the monetisation of our world-class resources in North Montney. LNG is just one of those opportunities,” he said.

On Petronas’ proposed investment in the LNG Canada project, Wan Zulkiflee said: “As one of the world’s largest LNG producers, Petronas looks forward to adding value to this venture through our long-term expertise and experience across the LNG value chain.

“We are committed to deliver LNG and natural gas, the cleanest fossil fuel in the world, to the growing global energy market.”

Petronas pointed out that the proposed LNG Canada project would include the design, construction and operation of a gas liquefaction plant and facilities for the storage and export of LNG, including marine facilities.

The plant would initially consist of two world-scale LNG processing units referred to as “trains”, with an option to expand the project in the future to four trains. Petronas said having an equity position in the project would enhance its business intent to develop its world-class natural gas resources in the North Montney, northeastern British Columbia, through its wholly owned subsidiary, Progress Energy Canada Ltd.

A report by Bloomberg noted that after Petronas cancelled its plan to invest in the Pacific NorthWest LNG project last July, the group was left without a plan to export gas produced by Progress Energy Canada unit to Asia as originally intended. Buying into the LNG Canada project would therefore help revive that prospect.

Canada is Petronas’ second-largest resource holder after Malaysia, with vast unconventional gas and oil resources in the North Montney.

Petronas and its North Montney joint-venture partners are one of the largest natural gas resource owners in Canada with over 52 trillion cu ft of reserves and contingent resources.

According to Bloomberg, LNG Canada plans to build an export facility at Kitimat near Prince Rupert – North America’s closest port to Asia – that could eventually reach 26 million tonnes a year in capacity.

The newswire noted that Petronas’ involvement would help bring financing and gas supplies to LNG Canada, as the group nears a final investment decision, expected this year.

Quoting National Bank of Canada analyst Greg Colman, Bloomberg said Petronas’ Progress unit could contribute an additional 560 million cubic feet a day of production to the project. This would ensure that the project would have all the gas it needs to meet its initial export target.

Shell and its partners have twice delayed a final investment decision on the LNG Canada project amid a global supply glut. But in recent months, Shell has indicated the window for competitive projects may be reopening.