A proposed liquefied natural gas (LNG) terminal on B.C.’s north coast took another major step forward Friday morning.
Kitimat LNG partners Apache Canada and EOG Resources Canada awarded the front-end engineering and design contract for the export terminal to KBR (NYSE:KBR), a global engineering firm.
“This is another important milestone for Kitimat LNG, taking us a significant step closer in being able to export LNG to Asia-Pacific markets as soon as 2015,” said Janine McArdle, president of Calgary-based Kitimat LNG.
The financial terms of the contract were not closed, but it represented the second move in a month to advance the $3 billion project.
In February, the LNG partners bought the remaining 50% in the Pacific Trails Pipeline Ltd. Partnership for $50 million from Vancouver-based Pacific Northern Gas (TSX:PNG).
Apache and EOG have applied to the National Energy Board for a 20-year exporting licence. But another major hurdle still has to be cleared before the project is viable.
The terminal has yet to land any customers.
In a release Friday, Apache and EOG said they were in “marketing discussions” with potential Asia-Pacific LNG customers.
“The partners expect to have firm sales commitments in place by the time a final investment decisions is made near the end of 2011,” the companies wrote in a release.