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Friday, March 18, 2011

Encana seeks new markets, buys into Apache plant, (TSE: ECA), (NYSE: APA), (NYSE: EOG)

Encana Corp (ECA.TO) will buy a 30 percent stake in the planned Kitimat liquefied natural gas export terminal on Canada's West Coast from Apache Corp (APA.N) and EOG Resources Inc (EOG.N) as it seeks to tap new markets for its burgeoning shale gas output. Financial details of the deal were not disclosed, but Apache said Friday it will sell Encana 11 percent of its equity in the project, while EOG will sell 19 percent. The deal gives Encana, Canada's largest gas producer, a portion of a project that is at the forefront of North American efforts to supply the fast-developing international market as domestic prices languish at around $4 per million British thermal units.