EOG Buys LNG Company

Despite low natural gas prices, I still think natural gas will be the bridge to a new energy future.  There is just too much activity in the natural gas arena to think that natural gas won't be a bigger player down the road.

More proof of that today: EOG will acquire Galveston LNG, Inc. Galveston has a 49 percent interest in the planned liquefied natural gas (LNG) export terminal to be located at Bish Cove, near the Port of Kitimat, about 405 miles (652 kilometres) north of Vancouver, British Columbia.


On January 13, 2010, Apache Corporation (Apache) announced an agreement with Kitimat LNG Inc. to acquire 51 percent of the planned Kitimat LNG project. Apache will be the operator of the project.

Planned capacity of the proposed Kitimat LNG terminal is about 700 million cubic feet of natural gas per day or 5 million metric tons of LNG per year. Preliminary construction costs, currently estimated to be approximately $3 billion (Canadian), will be revised at the conclusion of front-end engineering and design.

Again, this looks to me like EOG is buying assets at a time of depressed or stressed prices. 

And needless to say, North Dakota has a big play in natural gas, also.  We just don't hear that much about it due to the price differential with oil.