Encana Corporation will acquire a 30% interest in the planned Kitimat liquefied natural gas (LNG) export terminal and the associated natural gas pipeline on the west coast of central British Columbia, Canada.
The development includes construction of the 36in diameter Pacific Trail natural gas pipeline, which will run 463km from the Spectra Energy natural gas transmission system at Summit Lake, British Columbia, to Kitimat.
The Kitimat LNG export development has a planned initial capacity of about 700 million cubic feet per day of natural gas for the first of the two potential phases.
Encana's interest in the development includes a capacity reserve of 30% in the Kitimat LNG export facility and matching capacity on the proposed pipeline.
The front-end engineering and design for the LNG export facility is expected to be completed later this year, after which the partners will determine plans for a capital investment decision for the first phase of the development.
Construction of the project will begin in 2012 and export is expected to start in 2015.