MOSCOW (MRC) -- Apache has completed its previously-announced transaction with Chevron to build and operate the Kitimat LNG project and develop world-class natural gas resources at the Liard and Horn River basins in British Columbia, Canada, according Hydrocarbonprocessing.
Chevron and Apache each have become a 50% owners of the Kitimat LNG plant, the Pacific Trail Pipelines and 644,000 gross undeveloped acres in the Horn River and Liard basins.
After a brief transition period, Chevron will assume operatorship of the LNG plant and the pipeline. Apache Canada increased its ownership in the LNG plant and pipeline from 40% and will operate the upstream assets. Apache's net proceeds from the transaction were USD405 million.
Current plans call for two liquefaction trains, each with expected capacity of 5 million tpy of LNG (about 750 million cubic feet of gas per day). Kitimat LNG has received all significant environmental approvals and a 20-year export license from the Canadian federal government.
As MRC informed earlier, in September, 2011, Chevron Corp had launched its USD 28.4bn Wheatstone liquefied natural gas project in Western Australia, seeking to tap into growing Asian demand with its second LNG export project in the country. Apache Corp, Kuwait Foreign Petroleum Exploration Company (KUFPEC), Royal Dutch Shell, and Kyushu Electric are all equity participants in Wheatstone, and hold 13%, 7%, 6.4% and 1.83%, respectively while Chevron holds the rest.
Besides, Chevron Exploration & Production Lietuva, a registered company in Lithuania, has submitted an application to participate in the international competition for the exploration of shale gas in Lithuania.
Moreover, Chevron is going to develop shale gas deposits in Ukraine. In May 2012, the winners of a sharing agreement for gas exploration in Oleskaya (Lviv region) and Yuzovsky (Donetsk and Kharkiv region) areas became Chevron and Shell, respectively.
MRC