Apache's Canadian subsidiary said it completed a deal with Chevron Canada Ltd. to build and operate a liquefied natural gas project in Kitimat, British Columbia. Both companies serve as equity partners in the plant, affiliated pipelines and an estimated 644,000 acres of undeveloped land in the provincial Horn River and Liard basins.
"With Chevron's LNG experience and Apache's upstream track record, this team is ideally suited to move this project forward toward delivering the tremendous resources at Liard and Horn River to meet Asia's growing demand for LNG," G. Steven Farris, Apache's chairman and chief executive officer, said in a statement.
Canadian Prime Minister Stephen Harper has courted Asian economies as potential energy markets. An export terminal near Kitimat would help deliver natural gas as early as 2020. Apache said the LNG facility there would eventually have the capacity to produce 5 million tons of LNG per year.
British Colombian basins are considered some of the most gas-rich in North America. Apache said it estimates its acreage with Chevron has more than 50 trillion cubic feet of reserve potential.
Apache said its net proceeds from the Chevron transaction were $405 million.
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