Chevron Subsidiary Acquires Interest In Canadian LNG Project

February 2013, Vol. 240 No. 2

Chevron Corporation’s indirect Canadian subsidiary, Chevron Canada Limited, will acquire a 50% operating interest in the Kitimat LNG project and proposed Pacific Trail Pipeline and a 50% interest in 644,000 acres of petroleum and natural gas rights in the Horn River and Liard Basins in British Columbia.

Chevron Canada Limited will acquire all of the interests owned by affiliates of EOG Resources Canada Inc. and Encana Corporation in the proposed Kitimat LNG Project and PTP. Chevron Canada Limited will equalize interests with an Apache Corporation subsidiary, resulting in Chevron Canada Limited and Apache each holding a 50% interest in both the Kitimat LNG Project and PTP. Operatorship of both facilities will transfer to Chevron Canada Limited.

The proposed two-train Kitimat LNG Project, now in the Front-End Engineering and Design (FEED) phase, has a Canadian National Energy Board license to export 10 mtpa of LNG.

Chevron Canada Limited will acquire 110,000 net acres in the established Horn River Basin from Encana, EOG and Apache, and 212,000 net acres in the Liard Basin from Apache. Chevron Canada Limited and Apache will each hold a 50% interest and Apache will operate these two natural gas resource developments.