Chevron Canada Limited, has announced that it will acquire a 50 per cent operating interest in the Kitimat liquefied natural gas (LNG) project and proposed Pacific Trail Pipeline (PTP), and a 50 per cent interest in approximately 644,000 acres of petroleum and natural gas rights in the Horn River and Liard Basins in British Columbia, Canada.
“The Kitimat LNG development is an attractive opportunity that is aligned with existing strategies and will drive additional long-term production growth and shareholder returns,” said vice chairman, Chevron Corporation, George Kirkland. “This investment grows our global LNG portfolio and builds upon our LNG construction, operations and marketing capabilities. 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.”
Chevron Canada Limited will acquire all of the interests currently owned by affiliates of EOG Resources Canada Inc. and Encana Corporation in the proposed Kitimat LNG Project and PTP. Thereafter, Chevron Canada Limited will equalize interests with an Apache Corporation subsidiary, resulting in Chevron Canada Limited and Apache each holding a 50 per cent interest in both the Kitimat LNG Project and PTP. Operatorship of both facilities will transfer to Chevron Canada Limited.
The proposed two-train Kitimat LNG Project, currently progressing through the Front-End Engineering and Design phase, has a Canadian National Energy Board license to export 10 million tons per annum of LNG.
Additionally, Chevron Canada Limited will 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 per cent interest and Apache will operate these two natural gas resource developments.
The proposed two-train Kitimat LNG Project, currently progressing through the Front-End Engineering and Design phase, has a Canadian National Energy Board license to export 10 million tons per annum of LNG.
Additionally, Chevron Canada Limited will 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 per cent interest and Apache will operate these two natural gas resource developments.
“This investment by Chevron Canada Limited captures significant resource and acreage in proven and emerging natural gas basins in Canada, and is a key opportunity to expand our overall North America exploration and production portfolio,” said president, Chevron North America Exploration and Production, Gary Luquette. “It will enable our North America operations to play an increasingly important role in Chevron’s global growth.”