Artist rendering of Kitimat LNG Inc.'s proposed processing plant
The proposed $3-billion liquified natural gas (“LNG”) export facility located in Kitimat, British Columbia took another significant step towards becoming reality when EOG Resources Inc. of Houston announced it will buy Calgary-based Galveston LNC Inc. which founded Kitimat LNG back in 2004.
In January a 51% stake in the project was sold to another Houston-based Company Apache Corp. Both Apache Corp, and EOG are major players in the British Columbia’s Horn River Basin – one of the largest shale gas basins in North America.
The acquisition is a move by both EOG and Apache to open up new markets for their Horn River gas because the US has their own growing domestic shale basin plays that have increased natural gas reserves in the US by as much as 40%. The growth market for natural gas is certainly Asia. By acquiring the Kitimat LNG facility EOG and Apache provide a hedge against a declining export market to the US.
The Kitimat LNG plant will have a capacity of ~700 million cubic feet of natural gas per day or approximately 5 million tonnes of LNG per year. The facility is planned to open in 2014.
Globe & Mail: EOG buys rest of Kitimat LNG project
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