Kitimat LNG illustrationChevron buys EOG, Encana stake in Kitimat LNG
EOG Resources and Encana have sold their shares in Kitimat LNG and the Pacific Trail Pipeline to Chevron, the supermajor announced on 24 December 2012.
The financial terms of the deal were not disclosed. EOG Resources Canada and Encana previously held 30% each in Kitimat. Under the new agreement, Chevron and Apache will both hold 50% in the project. Chevron Canada will operate Kitimat LNG and the Pacific Trail Pipeline while Apache will operate upstream assets.
"This investment grows our global LNG portfolio and builds upon our LNG construction, operations and marketing capabilities," said Chevron Vice Chairman George Kirkland. "It is ideally situated to meet rapidly growing demand for reliable, secure, and cleaner-burning fuels in Asia, which are projected to approximately double from current levels by 2025."
Apache welcomed the acquisition, which boosted its own stake in the Kitimat LNG project, and new project partner Chevron.
"With experience developing LNG projects, marketing expertise and financial wherewithal, Chevron is the preferred coventurer to join Kitimat LNG," said G. Steven Farris, Apache Chairman and CEO. "Apache has a proven record in finding and developing shale gas resources in Canada and is the logical operator for the upstream elements of the joint venture."
Chevron Canada will also acquire approximately 110,000 net acres in the established Horn River Basin from Encana, EOG and Apache, and approximately 212,000 net acres in the Liard Basin from Apache. Chevron Canada Limited and Apache will each hold a 50% interest and Apache will operate these two natural gas resource developments.
The two-train Kitimat LNG facility, currently in the FEED phase, has been granted a license to export 10 MTPA of LNG by the Canadian National Energy Board. The facility will be built on Bish Cove, about 400 miles north of Vancouver, on First Nations land under an agreement with the Haisla First Nation.
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