Encana to Acquire 30% Stake in Kitimat LNG Project

Source: www.gulfoilandgas.com 3/18/2011, Location: North America

Kitimat LNG facility partners Apache Corporation and EOG Resources, Inc., through their Canadian subsidiaries, announced that Encana Corporation (Encana) has agreed to acquire a 30 percent working interest ownership in the planned natural gas liquefaction and export facility on British Columbia's west coast and the associated Pacific Trail Pipelines (PTP). Under the new ownership agreement, Apache will sell down 11 percent of the equity in Kitimat LNG and PTP, retaining operatorship and a 40 percent working interest. EOG will sell 19 percent, keeping a 30 percent working interest. Financial terms of the contract were not disclosed.

"Encana is a natural partner with Apache and EOG for the Kitimat project. All three companies have a significant presence in the Horn River Basin as well as extensive experience in British Columbia natural gas plays, which provides additional operating and commercial synergies for development of this vital energy resource," said Janine McArdle, president of Kitimat LNG and senior vice president-gas monetization, Apache Corporation.

Renee Zemljak, Encana's executive vice-president, midstream, marketing and fundamentals, said: "Encana is excited to join a leading-edge export project that has the potential to advance the North American natural gas industry and supply the growing global demand for LNG by serving a diverse market in the Pacific Rim."

Marketing discussions are under way with potential Asia-Pacific LNG customers. The partners expect to have firm sales commitments in place by the time a final investment decision is made near the end of 2011. Initial shipments of LNG are expected to begin in 2015.

About the Kitimat LNG facility and the PTP Pipeline

Apache Canada, EOG Canada and Encana plan to build the Kitimat LNG facility on IR#6 Bish Cove, approximately 650 kilometres (400 miles) north of Vancouver. The facility is planned to be built on First Nations land under a unique partnership with the Haisla First Nation. The initial phase of the facility has a planned capacity of approximately 5 million metric tonnes per annum or the equivalent of nearly 700 million cubic feet per day. PTP is planning to build a 463-kilometre (287-mile), 914-mm (36-inch) diameter underground line from Summit Lake, B.C. to Kitimat. Pacific Northern Gas Ltd. (PNG) will operate and maintain the planned pipeline under a seven-year agreement with Apache Canada, EOG Canada and Encana, with provisions for five-year renewals. Apache Canada, EOG Canada and Encana have also agreed to 20-year transportation service arrangements requiring them to use a portion of PNG's current pipeline capacity.


Morocco >>  10/21/2021 - Europa Oil & Gas (Holdings) plc, the AIM traded Ireland, Morocco and UK focused oil and gas exploration, development and production company, announces...
United States >>  10/21/2021 - Reabold is pleased to announce the signing of a conditional equity exchange agreement between Daybreak Oil and Gas Inc. ("Daybreak"), a US OTC traded ...

Germany >>  10/19/2021 - Ørsted has signed an agreement with Glennmont Partners (’Glennmont’), who will be acquiring a 50 % ownership share in Ørsted’s 900 MW German offshore ...
Senegal >>  10/18/2021 - Highlights
- Completion of Senegal RSSD sale to Woodside and sale proceeds of US$126 million received
- Drilling of Bambo-1 well, offshore...


Australia >>  10/15/2021 - Bounty Oil and Gas NL will acquire a 25% Strategic Interest in 4 Drill Ready Shallow Water Carnarvon Basin Oil Exploration Licences in Western Austral...
United Kingdom >>  10/15/2021 - Viaro Energy, the independent British energy company operating in Europe, has announced that its wholly owned subsidiary, RockRose Energy has complete...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.