Chevron's indirect Canadian subsidiary, Chevron Canada Limited, will acquire a 50% operating interest in the Kitimat LNG project and proposed Pacific Trail Pipeline (PTP), and a 50% interest in approximately 644,000 acres (2,606 km²) of petroleum and natural gas rights in the Horn River and Liard Basins in British Columbia, Canada.
Under the terms of the agreements, Chevron will acquire all of the interests currently owned by affiliates of EOG Resources Canada and Encana (30% each) in the proposed Kitimat LNG Project and PTP. Thereafter, Chevron will equalise interests with an Apache Corporation subsidiary, resulting in Chevron and Apache each holding a 50% interest in both the Kitimat LNG Project and PTP. Operatorship of both facilities will transfer to Chevron.
The proposed two-train Kitimat LNG Project, currently progressing through the Front-End Engineering and Design (FEED) phase, has a Canadian National Energy Board license to export 10 Mt/year of LNG.
Additionally, Chevron Canada Limited will acquire approximately 110,000 net acres (445 km²) in the established Horn River Basin from Encana, EOG and Apache, and approximately 212,000 net acres (258 km²) in the Liard Basin from Apache. Chevron and Apache will each hold a 50% interest and Apache will operate these two natural gas resource developments.