The first west coast lng project that received approvals was Apache/Encana/EOG Resources proposed 10 million ton/annum facility in Kitimat. The facility has previoulsy received NEB approval as well as BC environmental assessment certificates.
The problem was that these 3 North American natural gas producers only had experience in their upstream assets but had no lng experience, no lng tankers, no marketing arm with relationships to end-users, were cash-strapped, etc.
Speculation was that a global energy giant with lng experience and deep pockets would eventually step in and that's what Chevron did today.
Chevron purchased a 50% interest in the facility buying out Encana's and EOG Resources positions. Apache retains its 50% position.
Chevron has also purchased 110,000 net acres in NE BC's Horn River basin from Encana and 212,000 net acres in NE BC's Liard basin from Apache.
This lng facility is now on solid footing. Other lng energy giants such as Shell, Petronas, ExxonMobil, and British Gas Group also have lng facilities lined up in Kitimat/Prince Rupert.
Quote:
Chevron’s 50% stake in Kitimat LNG boosts Canada’s natural gas prospects
Financial Post
Yadullah Hussain
Dec 24, 2012
Chevron Corp. has acquired a 50% stake in a liquefied natural gas project in Kitimat, B.C. boosting Canada’s prospects of shipping natural gas to Asian markets.
Chevron has a track record of building LNG infrastructure and has a number of projects proposed or under way in Australia, Angola, Nigeria and Asia.
Chevron Canada Ltd. will take on the assets of EOG Resources Canada Inc. and Encana Corp., which were struggling to market the project. Their divestment, valued by the Wall Street Journal at US$1.3-billion, makes Chevron an equal partner with Apache Corp., which led the initial project.
The project which was original valued at US$3-billion and has already secured approval, is set to export 10 million tons per year of LNG.
The deal also includes a 50% interest in approximately 644,000 acres of petroleum and natural gas rights in the Horn River and Liard Basins in B.C.
“This investment grows our global LNG portfolio and builds upon our LNG construction, operations and marketing capabilities,” said George Kirkland, vice chairman, Chevron.”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 Ltd. also said it will buy around 110,000 net acres in the established Horn River Basin from Encana, EOG and Apache, and 212,000 net acres in the Liard Basin from Apache. Chevron and Apache will each hold a 50% interest and Apache will operate these two natural gas resource developments.
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http://business.financialpost.com/20...t-lng-project/