Phillips Petroleum Canada Ltd. is designated operator of the new liquefaction complex, which will be built at Kitimat, B.C. Phillips has a 35% interest in the project.
Participants include Daewoo Corp., Seoul, 25%; Bechtel Enterprises Inc., San Francisco, 10%; and Pac-Rim LNG Inc., Calgary, 20%. Korea Gas Corp., also of Seoul, is expected to acquire the remaining 10%.
The project is the first to be announced since Phillips and Bechtel formed an alliance last December to expand their technology, design, and construction expertise in developing LNG projects (OGJ, Dec. 16, 1996, p. 15).
Construction is slated to begin later this year, and deliveries to South Korea are planned to begin late in 1999.
Using Phillips' Optimized Cascade process, the project consists of a 3.5 million-metric ton/year liquefaction complex and associated pipeline.
Gas for the complex would be delivered through a proposed 300-mile, 24-in. pipeline interconnecting with Vancouver's Westcoast Energy Inc.'s main trunk line at Summit Lake, B.C.
The pipeline will have a design capacity of 750 MMcfd. It will parallel the existing gas pipeline serving end-users in the Kitimat area and transport gas produced in western Canada.
Phillips said the Kitimat complex would be the largest LNG complex in North America and the third plant to use its proprietary LNG technology. Phillips' Kenai, Alas., LNG complex, operating since 1969, currently exports 1.3 million metric tons/year to Japan, and the company's technology will be used in the Atlantic LNG Co. project in Trinidad (see related story, p. 24), now under construction. That complex will have a capacity of 3 million-metric tons/year of LNG.
Kitimat project activities are under way, including meetings with gas suppliers, negotiation of a sales agreement, environmental protection efforts, and engineering studies.
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