Kitimat LNG partners award FEED contract

By OGJ editors
-- Partners in Canada’s Kitimat LNG project let a contract to KBR for front-end engineering and design of the planned LNG export facility on British Columbia’s west coast. Financial terms weren’t disclosed.

Kitimat LNG owners Apache Canada Ltd. and EOG Resources Canada Inc., which awarded the contract to KBR, plan to build the facility with initial capacity of 5 million tonnes/year on Haisla First Nation land at Bish Cove 400 miles north of Vancouver.

Apache Canada is the managing partner of KM LNG Operating General Partnership, which owns 51% of the Kitimat LNG facility and is the facility operator. EOG Canada, through subsidiaries, owns 49%.

Janine McArdle, president of Kitimat LNG, said, “This is another important milestone for Kitimat LNG, taking us a significant step closer in being able to export LNG to Asia-Pacific markets as soon as 2015.”

Last month, Kitimat LNG Partners agreed to buy the remaining 50% interest in Pacific Trails Pipeline LP, thus securing full ownership of the infrastructure to transport natural gas from production areas to Kitimat LNG (OGJ Online, Feb. 9, 2011). The 36-in., 287-mile buried pipeline will carry natural gas to Kitimat from Summit Lake in Northeast British Columbia.

Apache Canada and EOG Canada are 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 near yearend.

Kitimat LNG’s application for a 20-year export license is pending with Canada’s National Energy Board. A hearing is set for June 7.

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