Petronas, the state-owned oil and gas company in Malaysia, said on Monday that it will invest $36 billion in Canada. The announcement came at the same time that Canadian Prime Minister Stephen Harper was attending in Bali, Indonesia a gathering of Asian leaders.

The money would be used to construct a liquefied natural gas (LNG) plant and put in place pipelines in British Columbia, Malaysian Prime Minister Najib Razak said. The gargantuan amount is the largest direct investment in Canada by any country, Mr Najib said at a new conference in Putrajaya, Malaysia.

He said, "This is a very significant landmark decision by Petronas. It is done in the wake of the friendly relations we have and the positive response we received from the Canadian government in respect to Petronas' involvement in Canada ... We have a very high level of confidence that this investment will be supported by the Canadian government today and in the future."

Mr Najib said the venture would benefit both nations since it would open up Canadian energy to new markets beyond east Asia and also create jobs.

Greg Kist, president of Petronas subsidiary Pacific NorthWest LNG project, reckoned the construction phase would create about 3m599 jobs and another 200 to 300 permanent full-time jobs at the plant when it becomes operational in early 2019.

The investment includes the $6 billion that Petronas spent in 2012 to by Progress Energy, based in Calgary.

The $36 billion is broken down into $11 billion for the proposed LNG export plant, $5 billion to put in place a provincial pipeline to be constructed by TransCanada Corp, and the remaining amount as annual expenses on natural gas wells in northeastern CB and gas processing plants.

These developments would mean that Canada would also emerge as a powerhouse in LNG exports, challenging the key role being played by Kuwait and expected to be dominated in the future by Australia.

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