The proposed LNG plant for Kitimat took a step closer to reality this week as Kitimat LNG announced that they had signed a Memorandum of Agreement with the Korean Gas provider KOGAS.
Under the agreement, KOGAS will acquire up to 40 percent of the Kitimat plants planned production as well as to take out an option to acquire an equity stake in the Kitimat terminal if it chooses.
The deal will provide KOGAS with 2 million tons per annum for a period of twenty years, providing a total purchase value of 20 billion dollars over the twenty year period.
The projected output of the Kitimat Terminal is to be five million tons per annum, and Kitimat LNG officials are looking to secure other export contracts and line up other investors in their operation using the Port of Kitimat as the export point for Natural gas from northeastern BC and Alberta.
The Kitimat LNG website offers up a variety of items for study for those interested in learning more about the proposed venture and the progress that is moving forward on the project.
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Globe and Mail-- Kitimat in deal with Korea Gas to purchase output
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