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Press Release

Kitimat LNG to Purchase Eurocan Industrial Site

Canada NewsWire

KITIMAT, BC, July 14, 2011 /CNW/ - KM LNG Operating General Partnership (Kitimat LNG) today announced that it has entered into an agreement to purchase the former Eurocan industrial site in Kitimat, B.C. from West Fraser. The sale is subject to obtaining government approvals for the transfer of related permits and licenses. Financial details of the transaction have not been disclosed.

"The Kitimat LNG partners are very pleased we have reached this agreement with West Fraser," said KM LNG President Janine McArdle. "The purchase of the site marks another significant local investment in Kitimat and is a great step forward for the Kitimat LNG project."

The site provides the Kitimat LNG project with a suitable area for a work camp, lay-down and storage area as the project continues to move forward with clearing and grading at the LNG export facility site.

The Kitimat LNG export facility is planned to be built on First Nations land under a unique partnership with the Haisla First Nation.

Kitimat LNG partners Apache Canada Ltd., EOG Resources Canada Inc. and Encana Corporation are currently in marketing discussions with potential Asia-Pacific LNG customers.

The partners expect to have firm sales commitments in place by the time a final investment decision is made.  Initial shipments of LNG are expected to begin by the end of 2015.

KM LNG Operating General Partnership currently has an application for a 20-year export licence before Canada's National Energy Board.

About the Kitimat LNG facility and the Pacific Trail Pipelines Limited Partnership (PTPLP) Pipeline

Apache Canada, EOG Canada and Encana plan to build the Kitimat LNG facility on IR#6 Bish Cove, approximately 650 kilometres (400 miles) north of Vancouver. The facility is planned to be built on First Nations land under a unique partnership with the Haisla First Nation. The initial phase of the facility has a planned capacity of approximately 5 million metric tonnes per annum or the equivalent of nearly 700 million cubic feet per day. The PTPLP is planning to build a 463-kilometre (287-mile), 914-mm (36-inch) diameter underground line from Summit Lake, B.C. to Kitimat. Pacific Northern Gas Ltd. (PNG) will operate and maintain the planned pipeline under a seven-year agreement with Apache Canada, EOG Canada and Encana, with provisions for five-year renewals.

Kitimat LNG project background and other information

Additional information about the Kitimat LNG project, including illustrations, an animated video, and previously issued news releases can be found at Key milestones for the project include:

  • March 2011 - Apache and EOG welcome Encana to the Kitimat LNG development
  • March 2011 - Kitimat LNG front-end engineering and design awarded to KBR
  • March 2011 - Apache and EOG acquire all of Pacific Trail Pipelines
  • February 2011 - First Nations Group (PTP) Limited Partnership sign benefits agreement with PTP
  • December 2010 - KM LNG Operating General Partnership files Canadian Federal Export License Application
  • December 2010 - EOG closes agreement on purchase of 49 percent of project
  • November 2010 - Documents fully executed for land leases with related agreements
  • November 2010 - Haisla First Nation votes overwhelmingly to approve land leases
  • May 2010 - EOG Resources Canada signs pre-acquisition agreement to purchase remaining 49 percent of project
  • January 2010 - Apache purchases 51 percent of project and becomes operator
  • August 2006 - Canadian federal environmental assessment decision statement received
  • June 2006 - Canadian provincial environmental assessment approval

About Apache Canada Ltd.

Apache Canada Ltd., a subsidiary of Apache Corporation (NYSE, Nasdaq: APA), is one of Canada's top oil and gas producers with operations in Alberta, British Columbia and Saskatchewan. Apache Corporation is an oil and gas exploration and production company with operations in the United States, Egypt, the United Kingdom North Sea, Australia and Argentina, in addition to Canada. Apache common stock is listed on the New York Stock Exchange and quoted on the NASDAQ National Market under the symbol APA. Apache posts announcements, updates and investor information, in addition to copies of all recent press releases, on its website

About EOG Canada

EOG Resources Canada Inc. is a wholly owned subsidiary of EOG Resources, Inc. (NYSE: EOG), one of the largest independent (non-integrated) oil and natural gas companies in the United States with proved reserves in the United States, Canada, Trinidad, the United Kingdom and China. EOG Resources, Inc. is listed on the New York Stock Exchange and is traded under the ticker symbol "EOG." For more information, visit

About Encana Corporation

Encana (TSX, NYSE: ECA) is a leading North American natural gas producer that is focused on growing its strong portfolio of natural gas resource plays in key basins from northeast British Columbia to east Texas and Louisiana. By partnering with employees, community organizations and other businesses, Encana contributes to the strength and sustainability of the communities where it operates. Encana common shares trade on the Toronto and New York stock exchanges under the symbol ECA. For more information about Encana visit

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