Encana Corp. will acquire a 30% interest in the planned Kitimat liquefied natural gas (LNG) export terminal and the associated natural gas pipeline located on the west coast of central British Columbia. The Kitimat LNG export development is being built to open significant new market opportunities in the Asia-Pacific region for abundant supplies of Canadian natural gas. Encana will join the current owners, EOG and Apache, in expanding trade, generating investment and producing new jobs and additional government revenues. This project is expected to help advance North America’s natural gas economy across the Pacific to markets where demand is increasing and natural gas prices are more closely linked to oil costs. Engineering and design work is currently underway with initial export capacity expected to reach 700 million cubic feet per day (MMcf/d) of natural gas, or approximately 5 million mt of LNG per year. The development includes construction of a new 36in diameter natural gas pipeline, running 463km from the Spectra Energy natural gas transmission system at Summit Lake, B.C. to the planned Kitimat LNG export facility. Encana’s 30% interest in the development incorporates a capacity reserve of 30% in the Kitimat LNG export facility and matching capacity on the pipeline. The partners intend to complete the front-end engineering and design of the LNG export facility later this year, after which plans for a capital investment decision for the first phase of the development will be determined. Project construction could begin as early as 2012, with exports commencing in 2015. The project is operated by Apache Canada Ltd., which will own 40%, with Encana and EOG Resources Canada Inc. owning 30% each, respectively.