Chevron Canada Ltd. has taken on a 50% stake in the Kitimat liquefied natural gas (LNG) project and the proposed Pacific Trail Pipeline (PTP), Chevron Corp. (NYSE:CVX) announced today.
In addition, Chevron Canada will acquire a 50% interest in 640,000 acres of petroleum and natural gas rights in British Columbia's Horn River and Liard Basins.
"This investment grows our global LNG portfolio and builds upon our LNG construction, operations and marketing capabilities," said Chevron Corporation vice-chairman George Kirkland. "It is ideally situated to meet rapidly growing demand for reliable, secure and cleaner burning fuels in Asia."
Chevron Canada will acquire all the interests of EOG Resources Canada Inc. and Encana Corporation in the Kitimat LNG and PTP.
Mark G. Papa, EOG Resources' (NYSE: EOG) chairman and chief executive officer, said, "While we still believe in the viability of the Kitimat project, our decision to exit is consistent with EOG's focus on domestic onshore crude oil production, which is generating more immediate reinvestment opportunities."
The Kitimat LNG Project has a Canadian National Energy Board licence to export 10 million tons of LNG per year.
