Chevron Buys Out Encana and EOG, Takes Lead in Kitimat Project

The Globe and Mail reported that Chevron Corp. (NYSE:CVX) has agreed to take 50-percent ownership of Kitimat LNG by buying the minority positions held by Encana Corp. (TSX:ECA,NYSE:ECA) and EOG Resources Inc. (NYSE:EOG). The move places Chevron at the helm of the project and brings it closer to becoming a reality.

As quoted in the market news:

Chevron … is a major global LNG player with an interest in a half-dozen global projects, including two that it leads. In the LNG industry, which typically operates on lengthy contracts, buyers are often more comfortable with large industrial players with a proven record of delivering energy on time. Chevron’s heft is a sufficient boost to Kitimat LNG that Apache now says construction is all but a foregone conclusion.

“With Chevron in the project, the Kitimat project is really more of a when proposition rather than an if,” Bob Dye, Apache’s senior vice-president of global communications, said Monday.

Click here to read the full report from The Globe and Mail.