Kitimat LNG

Kitimat LNG

July 13, 2009 - 3:22pm

Kitimat LNG Signs MOU with EOG Resources Canada for Natural Gas Supply

CALGARY, July 13, 2009 – Kitimat LNG Inc. announced today that it has signed a memorandum of understanding (MOU) with EOG Resources Canada (EOG) to supply natural gas to Kitimat LNG’s proposed liquefied natural gas (LNG) export terminal in Kitimat, B.C. 

Pursuant to the MOU, Kitimat LNG and EOG are proceeding to negotiate a definitive agreement under which EOG would supply specific quantities of the LNG facility’s 700 million cubic feet per day of natural gas feedstock. 

“EOG’s participation in our project reinforces the fact that business and natural gas fundamentals support our LNG terminal,” said Rosemary Boulton, President of Kitimat LNG. “Kitimat LNG presents a compelling opportunity for producers to leverage growing natural gas reserves in Western Canada and sell into significant new international markets such as Asia.”

EOG is the first producer to sign an MOU with Kitimat LNG. Kitimat LNG has also signed MOUs with leading LNG companies such as Korea Gas Corporation (KOGAS) and GAS NATURAL for the purchase of LNG produced at the terminal.

“We look forward to working with EOG and our other partners to move the LNG terminal ahead and provide the substantial and ongoing economic benefits associated with the project to B.C.,” added Boulton.

Kitimat LNG is in discussions with potential terminal users, LNG buyers and other natural gas producers for the five million tonnes per annum project.

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