UPDATE 2-Chevron to buy stake in Kitimat LNG from Encana, EOG

Mon Dec 24, 2012 1:31pm EST
 
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* Chevron takes half interest in Kitimat LNG

* Buys out Encana, EOG stakes and becomes operator

* Adds exploration lands in northern British Columbia

* Apache to net $400 million

* Terms undisclosed, analyst estimates Encana, EOG paid $450 mln

By Scott Haggett

CALGARY, Alberta, Dec 24 (Reuters) - Chevron Corp said on Monday it will enter the Canadian liquefied natural gas business with the acquisition of the 50 percent stake in the Kitimat LNG project held by Encana Corp and EOG Resources Inc.

Chevron will take Encana's and EOG's 30 percent stakes in the LNG-export project for an undisclosed price as the No.2 U.S. oil company looks to jumpstart North American natural gas exports.

It will also buy the two companies' interest in a pipeline serving the project, at Kitimat, 650 kilometers (400 miles) north of Vancouver, and will pay $550 million for a half stake in 644,000 acres of exploration lands in the Horn River and Liard shale-gas fields owned by Apache Corp.   Continued...