Encana acquires interest in Kitimat LNG
Encana Corporation has agreed to acquire a 30% interest in the planned Kitimat LNG export terminal, located on the west coast of central British Columbia, and the associated natural gas pipeline. This proposed Kitimat LNG export development is intended to open tremendous new market opportunities in the Asia-Pacific region for abundant supplies of Canadian natural gas.
Expanding Canadian natural gas exports to new continents
"We are pleased to join the current owners, Apache and EOG, in expanding trade, generating investment and creating new jobs and additional government revenues. We expect that this project will help advance North America’s natural gas economy across the Pacific to markets where demand is growing and natural gas prices are more closely tied to oil prices," said Randy Eresman, Encana’s President & Chief Executive Officer.
The proposed Kitimat LNG export development, located about 650 km north of Vancouver at Bish Cove near the Port of Kitimat, has planned initial capacity, from the first of two potential phases, of about 700 million ft3/d of natural gas, or about 5 million tpy of LNG. The development includes construction of a new 36 in. diameter natural gas pipeline - Pacific Trail Pipelines - running 463 km from the Spectra Energy natural gas transmission system at Summit Lake, B.C. 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. The project is operated by Apache Canada Ltd., which will own 40%, with Encana and EOG Resources Canada Inc. each owning 30% respectively.
Enormous natural gas resource potential in British Columbia
Export volumes for the Kitimat LNG project are expected to be supplied by burgeoning natural gas resources in B.C. and Alberta - the Horn River Basin and the Montney geological formation. According to industry studies, recent B.C. discoveries indicate the province will have the resource capacity to more than double current production of about 2.8 billion ft3/d to more than 7 billion ft3/d in the next seven to 10 years. This is more than sufficient to supply B.C., its current customers, and new markets opened by the Kitimat LNG export development
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/21032011/encana_acquires_interest_in_kitimat_lng/
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