Apache is considering selling liquified natural gas shipped to Asia from Kitimat at North American prices, a industry-watching news site reports from an energy conference in Miami.

Argus Media says that Apache and its partners in KM LNG, EOG and Encana are still finding little interest in the original idea of selling the LNG at  the Asian base price, called Japan Cleared Customs price, which is a percentage of the price of oil.  The idea at that time was that profit would come from the difference between North American market price and the higher Asian price.

That was undercut when another group, Cheniere Energy, decided to sell natural gas to Asia from  its Sabine Pass export terminal in Louisiana based on the "Henry Hub"  North American market price for natural gas,  plus a 15 per cent surcharge and a reservation fee.

Argus says  Encana's president for US operations Jeff Wojahn told investors at a Bank of America Merrill Lynch Global Energy Conference in Miami  that the Kitimat developers are now considering "options typical for the Gulf coast export projects."

Argus also quotes  Apache manager of investor relations Castlen Kennedy as saying: "“Kitimat is progressing and we will announce a final investment decision (FID) soon. The local government is very supportive of us.”

Argus quotes Encana's Wojahn as saying the FIB will come in the first quarter of 2013, using their own natural gas supplies. “All three of the partners have assets in the Horn River so it's a natural area of development for the play. And the Horn River basin is a world-class shale gas basin, it's waiting for an LNG pump, so it's really positioned well.”