Apache Commitment to Kitimat LNG Project Significant Step
By Ralph Glass, Vice President Operations
For years AJM Petroleum Consultants have been expressing the need for a liquefied natural gas (LNG) export facility on Canada's west coast to provide an alternative market for Canadian natural gas. This has now also been recognized by Apache Corporation who announced late Wednesday January 13, 2010 that its subsidiary, Apache Canada Ltd., has agreed to acquire 51 per cent of Kitimat LNG Inc.'s planned LNG export terminal in British Columbia. Apache also reserved 51 per cent of the capacity in the terminal. This is major initiative forward by one of the dominant players in the Horn River area shale natural gas development to ensure there is a market available for its product. The commitment adds significant weight and capital base to the project guaranteeing it will proceed.
Apache’s initiative is an important step forward for British Columbia and development of the Horn River area. The planned capacity for the facility is approximately 700 MMcf of natural gas per day, or approximately five per cent, of Canada's current production level of 13.0 Bcf per day.
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