Apache Corp. (APA) announced that its Apache Canada Ltd. Unit has entered into an agreement to acquire 51% of Kitimat LNG Inc.'s planned liquefied natural gas export terminal in British Columbia. Apache also reserved 51% of capacity in the terminal.
The proposed Kitimat project, located at Bish Cove near the Port of Kitimat about 405 miles north of Vancouver, has planned capacity of about 700 MMcf of natural gas per day, or five million metric tons of LNG per year.
Preliminary construction cost estimates of C$3 billion will be refined at the conclusion of front-end engineering and design. The project will employ an estimated 1,500 people during construction and 100 on a permanent basis.
Kitimat LNG received its Provincial Environmental Certificate for the liquefaction terminal in December 2008 and the Federal Environmental Certificate in January 2009.
Under the terms of the agreement, Apache will make an initial payment to the current owners of Kitimat LNG with additional consideration due upon achievement of certain commercial and regulatory milestones.
Apache will fund the project's FEED, to begin shortly, with a final investment decision expected in 2011. First LNG shipments are projected for 2014. Apache will become operator of the project.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.