Proponents of a $3 billion liquefied natural gas terminal in Kitimat have yet to decide if they’re going to build their project, but that hasn’t stopped them from snapping up land in the region.
On Thursday, Kitimat LNG, a partnership between Apache (NYSE:APA), EOG Resources (NYSE:EOG) and Encana (TSX:ECA), bought the former Eurocan industrial site from West Fraser Timber Co. (TSX:WFT) for an undisclosed sum.
The site, located some 650 kilometres north of Vancouver, was home to a paper mill and 535 workers before West Fraser shut the facility in January 2010.
In March, the forestry giant sold Eurocan’s wharf to nearby smelter operator Rio Tinto Alcan.
“The Kitimat LNG partners are very pleased we have reached this agreement with West Fraser,” commented Kitmat LNG president Janine McArdle. “The purchase of the site marks another significant local investment in Kitimat and is a great step forward with clearing and grading at the LNG export facility site.”
The export facility, which will be on Haisla First Nation land, is expected to ferry gas to energy hungry Asian markets from B.C. sometime in 2015.
But the facility’s proponents have yet to land any customers or make a final investment decision on the project.
Still, a spokesperson for Apache Canada said the Kitimat LNG partners now have all the land they need to build the export facility.
The former Eurocan site will be used to set up a work camp and storage area.
Joel McKay
Twitter:jmckaybiv