Pacific Northern Gas (PNG) is to sell its 50% stake in the Pacific Trail Pipelines Limited Partnership (PTP) to Apache Canada and EOG Resources for a total of $50m.
PTP is developer of the proposed 463km KSL natural gas pipeline, which will serve the proposed Kitimat LNG facility owned by Apache Canada and EOG Canada.
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Under the transaction, PNG will receive a first payment of $30m on closing and a second payment of $20m at the time of construction of the Kitimat LNG facility.
PNG president and CEO Roy Dyce said the long term transportation service agreements worked out with Apache Canada and EOG Canada will augment capacity use on PNG’s existing pipeline system.
