Kitimat LNG Partners Award KBR the FEED Contract for LNG Project
CALGARY, March 4 /PRNewswire/ - Kitimat LNG partners Apache Canada Ltd. (Apache Canada) and EOG Resources Canada Inc. (EOG Canada) today announced they have awarded KBR the Front End Engineering and Design (FEED) contract for the planned natural gas liquefaction and export facility on British Columbia's west coast. Financial terms of the contract were not disclosed.
"This is another important milestone for Kitimat LNG, taking us a significant step closer in being able to export LNG to Asia-Pacific markets as soon as 2015," said Janine McArdle, president of Kitimat LNG. "KBR is a recognized industry leader in LNG developments and brings extensive experience to our project."
Last month, Kitimat LNG Partners entered into an agreement to purchase the remaining 50 percent interest in Pacific Trails Pipeline Limited Partnership, thus securing full ownership in the infrastructure to transport natural gas from production areas to the Kitimat LNG facility. The Pacific Trails Pipeline is a planned 463-kilometre (287-mile), 914-mm (36-inch) diameter underground line that will carry natural gas from Summit Lake to Kitimat.
The Kitimat LNG export facility is planned to be built on First Nations land under a unique partnership with the Haisla First Nation.
Apache Canada and EOG Canada are in marketing discussions with potential Asia-Pacific LNG customers. The partners expect to have firm sales commitments in place by the time a final investment decision is made near the end of 2011. Initial shipments of LNG are expected to begin in 2015.
Kitimat LNG currently has an application pending for a 20-year export licence before Canada's National Energy Board. A hearing on the application is set for June 7, 2011.
About the Kitimat LNG Facility
Apache Canada and EOG Canada plan to build the Kitimat LNG facility on Bish Cove, approximately 650 kilometres (400 miles) north of Vancouver. The facility is planned for an initial output capacity of nominally 5 million metric tonnes per annum. Apache Canada is the managing partner of KM LNG Operating General Partnership, which owns 51 percent of the Kitimat LNG facility and is the facility operator. EOG Canada, through its wholly owned subsidiaries, owns the remaining 49 percent of the Kitimat LNG facility. A copy of this release can be found at www.kitimatlngfacility.com.
About Apache Canada Ltd.
Apache Canada Ltd., a subsidiary of Apache Corporation (NYSE, Nasdaq: APA), is one of Canada's top oil and gas producers with operations in Alberta, British Columbia and Saskatchewan. For more information about Apache Canada, visit www.apachecorp.com/Canada.
About EOG Canada
EOG Resources Canada Inc. is a wholly owned subsidiary of EOG Resources, Inc. (NYSE: EOG), one of the largest independent (non-integrated) oil and natural gas companies in the United States with proved reserves in the United States, Canada, Trinidad, the United Kingdom and China. EOG Resources, Inc. is listed on the New York Stock Exchange and is traded under the ticker symbol "EOG." For more information, visit www.eogresources.com.
KBR delivers a wide range of services through its downstream, gas monetization, infrastructure, oil and gas, power and other business segments, and differentiates itself as a technology-driven engineering, procurement and construction (EPC) company. KBR is also an industry leader in transforming hydrocarbon resources into value across all sectors of the energy and chemicals industries.
Important information concerning forward-looking statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Apache Corporation and EOG Resources believe that their expectations to conclude transactions and other agreements associated with the Kitimat LNG Project are based on reasonable assumptions including, without limitation, expectations, beliefs, plans and objectives regarding the development of the Kitimat LNG facility. No assurance, however, can be given that such expectations will prove to have been correct. The companies caution that the Kitimat LNG facility may not proceed or could occur later than anticipated. See "Risk Factors" in the respective companies' most-recent Annual Reports on Form 10-K and other filings with the Securities and Exchange Commission (SEC) for a discussion of risk factors that affect their businesses and could affect the referenced transaction and agreements. The companies undertake no obligation to publicly update or revise any forward-looking statements.
SOURCE Apache Canada Ltd.
Posted: March 7, 2011
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