Encana to acquire stake in LNG development
Encana Corp. plans to acquire a 30% interest in the proposed Kitimat LNG export terminal on the west coast of central British Columbia.
By OGJ editors
HOUSTON, Mar. 18 -- Encana Corp. plans to acquire a 30% interest in the proposed Kitimat LNG export terminal on the west coast of central British Columbia.
Financial terms were not disclosed. Apache Corp. currently has 51% interest in the project and EOG Resources Inc. holds the remainder. After the Encana transaction, Apache will keep 40% and EOG, 30%.
Encana’s acquisition, subject to regulatory approvals, is expected to close in the second quarter. The Kitimat LNG export development intends to provide Canadian gas to the Asia-Pacific region.
Engineering and design work are under way for an initial export capacity of 700 MMcfd, or 5 million tonnes/year of LNG. The development will be near the Port of Kitimat.
Plans call for construction of a 36-in. gas pipeline, Pacific Trail Pipelines, which will extend 463 km from the Spectra Energy gas transmission system at Summit Lake, BC, to the planned Kitimat LNG export facility.
The partners expect to complete the front-end engineering and design for the LNG export facility later this year, after which the partners will determine plans for a capital investment decision for the first phase of the development.
Project construction could begin in 2012, with exports potentially starting in 2015.