Encana to buy 30 % in Kitimat LNG project

Canada's Encana Corp will buy a 30 percent stake in the planned Kitimat liquefied natural gas export terminal on Canada's west coast from Apache Corp (APA.N) and EOG Resources (EOG.N).


Financial details of the deal were not announced, but Apache said it would sell Encana 11 percent of its equity in the project, while EOG will sell 19 percent.


The deal gives Encana a portion of a project at the forefront of North American efforts to sell natural gas into the fast-developing international market.


A boom in natural gas production, largely due to discoveries of massive shale gas fields, has created a glut of supply in North America, pressuring prices for the fuel and prompting energy companies to seek new buyers.


Apache will remain operator and the largest stakeholder with a 40 percent interest in the project, which is expected to cost $3 billion to build.


EOG will own a 30 percent interest after the transaction.


The Kitimat project, located at Bish Cove near the Port of Kitimat about 405 miles (652 kilometers) north of Vancouver, has planned capacity of about 700 million cubic feet of natural gas per day, or 5 million metric tons of liquefied natural gas per year.
(Source:http://en.portnews.ru)