Apache, EOG and Encana lead British Columbia gas development for export
It took a decisive step forward in 2010 when Apache purchased a majority interest in the proposed project.
Today Kitimat LNG is owned:
– 40% by KM LNG Operating General Partnership (KM LNG) by its managing partner Apache Canada Ltd (Apache).
– 30% by EOG Resources Canada Inc. (EOG)
– 30% owned by Encana Corporation (Encana).
KM LNG is the operator.
Kitimat LNG facility and the PTP Pipeline
The facility is planned to be built on Haisla First Nations land.
The initial Kitimat LNG phase 1 of the facility is planned to have
– Gas liquefaction plant with 5 million t/y LNG capacity or the equivalent of nearly 700 million cf/d gas
– LNG storage
– Marine on-loading facilities
– Pipeline of approximately 14 kilometres from the Pacific Trail Pipelines
To connect Kitimat LNG to the existing Spectra Energy Westcoast Pipeline system, the Pacific Train Pipeline (PTP) is planning to build a 463-kilometre (287-mile), 914-mm (36-inch) diameter underground pipeline from Summit Lake, B.C. to Kitimat.
In March 2011, Kitimat LNG partners acquired Pacific Trail Pipelines
Pacific Northern Gas Ltd. (PNG) will operate and maintain the planned pipeline under a seven-year agreement with Apache, EOG and Encana, with provisions for five-year renewals.
Apache, EOG and Encana have also agreed to 20-year transportation service arrangements requiring them to use a portion of PNG’s current pipeline capacity.
The proximity of Kitimat LNG to the existing natural gas transmission infrastructure is one of the advantages of this project and ensures supply is readily accessible to the facility.
Kitimat LNG awarded the FEED to KBR
In March 2011, Kitimat LNG awarded the Front End Engineering and Design (FEED) contract to KBR.
When concluded, the Kitimat LNG partners will make a final investment decision on whether to proceed with the project.
Main construction is expected to commence following that decision.
The FEED will explore the feasibility study and timing of constructing a second LNG train.
Key requirement: Reduced Environmental footprint
Kitimat LNG is committed to high environmental and safety standards in all of our operations and to maximizing the benefits and minimizing the impact of the project on the environment.
Measures to minimize environmental footprint include:
Small facility footprint to minimize land use (ground footprint)
Use of hydroelectric power to reduce overall emissions (carbon footprint)
No harbor dredging minimizes impact on marine environment (marine footprint)
Apache Canada Ltd in brief.
Apache Canada Ltd., a subsidiary of Apache Corporation is one of Canada’s top oil and gas producers with operations in Alberta, British Columbia and Saskatchewan, Canada.
Apache Corporation is an oil and gas exploration and production company with operations in the USA, Egypt, the UK North Sea, Australia and Argentina, in addition to Canada.
EOG Canada in brief
EOG Resources Canada Inc. is a wholly owned subsidiary of EOG Resources, Inc. , one of the largest independent (non-integrated) oil and gas companies in the USA with proved reserves in the USA, Canada, Trinidad, the UK and China.
Encana Corporation in brief
Encana is a leading North American natural gas producer that is focused on growing its strong portfolio of natural gas resource plays in key basins from northeast British Columbia to east Texas and Louisiana.
LNG Trading and marketing discussions are under way with potential Asia-Pacific LNG customers.
Apache, EOG and Encana expect to the LNG Kitimat project completion to begin initial shipments of LNG in 2015.