Apache buys 51 per cent stake in Canada LNG export plant
14 Jan 2010
US energy firm Apache Corp has signed an agreement to take 51 per cent capacity of Canada's Kitimat LNG Inc.'s proposed C$3-billion ($2.91 billion) liquefied natural gas terminal on the British Columbia coast, the company said yesterday.
The terminal is meant to export natural gas from north eastern British Colombia to markets such as Asia.
The Houston-based company estimates the proposed terminal will have an export capacity of 700 million cubic feet per day.
Under the terms of the deal Apache will make an initial payment to Kitimat LNG with additional payments due when certain commercial and regulatory milestones are reached, The Winnipeg Free Press reported in its online edition.
Apache will also become operator of the project.
''Kitimat could benefit other markets by being able to export some of the surplus gas,'' Tim Wall, head of Apache Canada, told reporters on a conference call.
