Kitimat Kitimat LNG Final Investment Decision Likely A Second Half 2012 Event: EOG
EOG Resources Inc. said this morning a final investment decision on the Kitimat LNG export plant near Kitimat, B.C., is likely coming in the second half of the year.
"The Kitimat LNG project continues to progress," said Mark Papa, chief executive officer, during a fourth quarter and year-end conference call. "Key items we need to establish before making a final investment decision are a detailed project cost estimate and obtaining an oil-indexed offtake contract.
"We expect [the] final investment decision will be a second half 2012 event."
This contrasts with the expectation of some analysts, who anticipated the decision to be imminent. KM LNG Operating General Partnership (KM LNG) is 40 per cent owned by its managing partner Apache Canada Ltd., 30 per cent owned by EOG with 30 per cent held by Encana Corporation.
In the Horn River Basin, the company committed the minimum drilling capital required to hold leases in 2011 and will do the same in 2012.