Canada-based Kitsault Energy has signed a memorandum of understanding (MOU) with an Asian oil and gas company to develop the Northeast British Columbia and Northwest Alberta Natural Gas (NG) fields in the country.

As part of the deal the partnership will also collaborate on a NG pipeline, liquification of NG (both floating and land based), a dedicated energy export terminal, LNG transportation at Kitsault, and regasification, marketing, sales and distribution.

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The multi-phase project will include Phase I, II and III. In Phase I, a rail line will be developed from Terrace to Kitsault, as well as a private airport, export terminal and facilities to export about five million tonnes of LNG per year.

"Plans are underway to start shipping LNG in 2017."

The project is expected to cost about $8bn to $10bn, and plans are underway to start shipping LNG in 2017.

In Phase II, a land-based LNG facility and operation, and additional export facility will be developed to produce about 30 million tonnes of LNG per year, with plans to be completed by 2020 at an estimated cost of about $8bn to $10bn.

In Phase III, the partnership plans to expand energy export capabilities, which are needed in the future, with an investment of about $5bn to $10bn.

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Kitsault Energy is also planning to work with other partners for upstream, midstream and downstream activities in Canada and Asia.

Kitsault is a purpose-built resource community, which includes about 350 acres of industrial and residential land, full British Columbia Hydro service and deepwater for a port.

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