Pacific Northern Gas has agreed to sell its 50 per cent stake in a planned $1.2-billion natural gas pipeline in northern B.C. for $50 million to their American-based partners.
Apache Canada Ltd. and EOG Resources Canada Inc., whose parent companies are headquartered in Houston, Tex., asked Pacific Northern Gas to sell its stake so they could better manage the co-ordination and financing of the pipeline project with a planned $3-billion liquefied natural gas export facility at Kitimat.
The plan is to export natural gas from northeastern B.C. to Asia.
Apache and EOG Resources already own the other half of the pipeline. When the deal is completed, Apache will own 51 per cent of the pipeline, and EOG will own 49 per cent.
Vancouver-based Pacific Northern Gas, which already operates a natural gas pipeline in northern B.C, agreed to the deal after obtaining the cash and other benefit.
