Kitimat LNG
Apache and its partners, EOG and Encana, plan to build the Kitimat LNG export facility on Bish Cove near the Port of Kitimat, 643 kilometres north of Vancouver.
Kitimat LNG will source natural gas from the Western Canadian Sedimentary Basin and connect it with the dynamic LNG markets in Asia-Pacific, including South Korea, China and Japan, the largest importer of LNG in the world.
The project received a 20-year export licence from the National Energy Board in October 2011, and now has its environmental permits from the federal and provincial governments. The Kitimat project also has the support of First Nations, the business community and is backed by three major international natural gas companies (Apache, Encana and EOG Resources).
Apache’s purchase of the majority position in the Kitimat LNG facility means that we would become Kitimat LNG’s operator. Pending a final investment decision, Apache will be responsible for the development of the facility and for marketing its export and liquefaction services globally.
Apache Canada continues to invest significant resources in the development of the facility, and the rationale for supporting Kitimat LNG and the Pacific Trail Pipelines projects is stronger now than ever.
Kitimat LNG is committed to achieving high environmental and safety standards in all of its operations and to maximizing the benefits and minimizing the impact of the project on the environment. Measures to minimize environmental impacts include:
- Small facility footprint to minimize land use
- Use of hydro-electric power to reduce overall emissions
- No harbour dredging minimizes impact on marine environment
Pacific Trails Pipeline
The Pacific Trails Pipeline project is a $1-billion, 463-kilometre pipeline, that will provide the Kitimat LNG terminal with excellent access to natural gas supplies in British Columbia and Alberta.
Pacific Trail Pipelines, a partnership between managing operator Apache with 40 per cent of the project, and EOG and Encana holding the remaining 30 per cent each, is developing the natural gas transmission pipeline system from Summit Lake to Kitimat, British Columbia, to serve Kitimat LNG Inc.'s export terminal near Kitimat, B.C.
Construction is scheduled to begin in 2012 pending a final investment decision to proceed with the project and obtaining required regulatory approvals. To minimize environmental impacts, right-of-way clearing is proposed to begin in summer 2012. The Pacific Trail Pipelines is proposed to be fully operational in 2015.
The proposed project consists of a looping of the existing PNG pipeline between Kitimat and Summit Lake to increase capacity and operate a bi-directional pipeline system. The new loop will provide the following benefits:
Deliver natural gas from east to west, transporting natural gas from the Spectra pipeline system to Kitimat LNG liquefaction terminal while providing for pipeline system flow to be bi-directional (westerly or easterly).
Increase transmission system capacity from approximately 115 million cubic feet per day (MMcfd) to up to 1,000 MMcfd of natural gas for the Kitimat LNG Terminal and,
Increase gas delivery options for PNG and its customers, improving security of supply and ensuring competitive rates.
Horn River
Apache has interest in 200,000 net acres in the Horn River Basin in northeastern B.C. – one of the highest-quality unconventional gas plays in North America.
To date, Apache has drilled, completed and placed on production 69 horizontal wells and in September 2011 reached a peak net production rate of 149 MMcfd.
The use of multi-well pads in the Horn River Basin goes a long way to minimize the environmental footprint and enables Apache to access more of the targeted reservoir while disturbing less surface land. As an innovative and forward-thinking company, identifying and developing environmental stewardship opportunities, such as the Debolt Water Treatment Plant, is an integral part of our daily business at Apache.
Through the development of the Debolt Water Treatment Plant, the first of its kind in North America, Apache’s move from fresh water to non-potable, saline water represents an industry-leading effort for water management.
Water from the Debolt aquifer, a deep sub-surface aquifer occurring at depths of 500 to 1,100 metres , is extracted and treated at the plant before being used for operations. The flowback water management system allows for reuse of the water over time by reinjecting the water used for hydraulic fracturing back into the Debolt formation.
In 2011, the Debolt plant produced upwards of 95 percent of the water required for Apache’s hydraulic fracturing operations in the Horn River Basin and garnered a national Responsible Canadian Energy award for Environmental Performance. http://www.capp.ca/rce/awards/2011/environmental/Pages/default.aspx#8vaPXrAFsh98
Over the course of only two years, Apache has dramatically decreased its use of surface water in the Horn River Basin. Securing access to an integrated water treatment and distribution system which allows for the full recovery and re-use of fracture stimulation fluids has also provided the opportunity for responsible development and growth with low environmental costs.
Water management continues to be a priority for Apache. As a founding member of the Horn River basin Producers Group, Apache Canada is also helping facilitate a three-year study on water resources in the area of our operations.
Noel
Apache acquired its 100-percent working interest in the Noel area from BP in October 2010.
Noel is also the first full gas field development in Canada to apply a solar photo-voltaic system where solar electricity is generated on site and stored in batteries to help provide a permanent energy supply. A thermal electric generator is used when there is reduced sunlight for more than a week.
Carbon reductions at Noel involve a near-zero emissions well site design using solar energy and electrifying compressors where 84 per cent of the power is hydro-generated.
By drilling long-reach, open-hole horizontal wells at depths exceeding 2,200 metres to produce the tight gas formation, the potential well count was significantly reduced. Drilling multiple wells on a single site has also decreased the number of well pads to 85, minimizing the amount of land disturbed, enhancing economics and addressing stakeholder concerns by helping limit traffic, noise and visual impacts.
With an 85-percent reduction in greenhouse gas (GHGs) and 70 per cent reduction in surface land use, Noel has set a new industry benchmark for responsible and balanced resource development.
On March 15, 2010, the Noel Major Project received the President’s Award from the Canadian Association of Petroleum Producers (CAPP). It also earned the 2010 Steward of Excellence Award and the Best Practice Award at the 2009 World Gas Conference.
Mist Mountain
The Mist Mountain Coalbed Gas project is a proposal by Apache Canada to assess whether natural gas in British Columbia’s Crowsnest Coalfield can be produced in a safe, economic and environmentally responsible manner. Our appraisal plan includes three to five years of environmental studies, technical research and consultation prior to a decision on commercial development.
The area Apache Canada is evaluating covers approximately 325 square kilometres near the communities of Fernie and Sparwood. The region offers tremendous prospects for natural gas development. Production over the life of the project could equal 40 years of current demand in B.C.’s Lower Mainland.
We are currently in the appraisal stage, which is expected to take three to five years at a cost of up to $100 million. The purpose of the stage is to assess the viability of CBG production by proving technologies and practices that will allow for the design of an environmentally sustainable commercial project.
Download Mist Mountain Coalbed Gas Project backgrounder +