Apache Corporation (NYSE:APA, NASDAQ: APA) announced that it has signed an agreement with Chevron Canada Limited to build and operate the Kitimat LNG project and develop world-class shale gas resources at the Liard and Horn River basins located in B.C.
As quoted in the press release:
Chevron Canada, a subsidiary of Chevron Corp (NYSE:CVX), and Apache Canada each will become a 50 percent owner of the Kitimat LNG plant, the Pacific Trail Pipeline and 644,000 gross undeveloped acres in the Horn River and Liard basins. Chevron Canada will operate the LNG plant, which will be located on the northern British Columbiacoast, and the pipeline; Apache Canada will operate the upstream assets.
Apache’s Chairman and CEO, Steven Farris, said:
This agreement is a milestone for two principal reasons: Chevron is the premier LNG developer in the world today with longstanding relationships in key Asian markets, and the new structure will enable Apache to unlock the tremendous potential at Liard, one of the most prolific shale gas basins in North America.