Apache Canada has completed the previously disclosed transaction with Chevron to build and operate the Kitimat LNG project and develop world-class natural gas resources at the Liard and Horn River basins in British Columbia, Canada.
Chevron Canada, a subsidiary of Chevron Corp, and Apache Canada each have become a 50% owner of the Kitimat LNG plant, the Pacific Trail Pipelines and 644,000 gross undeveloped acres in the Horn River and Liard basins. After a brief transition period, Chevron Canada will assume operatorship of the LNG plant and the pipeline. Apache Canada increased its ownership in the LNG plant and pipeline from 40% and will operate the upstream assets. Apache’s net proceeds from the transaction were US$405.
Current plans call for two liquefaction trains, each with expected capacity of 5 Mt/year of LNG. Kitimat LNG has received all significant environmental approvals and a 20-year export license from the Canadian federal government.