Chevron says to halt feasibility work on Kitimat LNG project in Canada

Chevron says it would stop further feasibility work for the proposed Kitimat LNG export project in Canada which the firm develops with Australia’s Woodside.

The US energy giant operates the 50/50 venture but it revealed a plan to divest its interest in the project in December 2019.

However, Chevron’s Canadian unit has not managed to find a buyer for its stake since then.

“Despite the many challenges posed by Covid-19, Chevron engaged in a process to divest while continuing to work with its joint venture partner, Woodside, on agreed project activities that brought value to the asset or were required for regulatory and operational compliance,” the firm said in a statement last week.

“At this time, it is Chevron’s intent to cease Chevron-funded further feasibility work for the proposed Kitimat LNG project,” it said.

Chevron did not provide any additional information only saying that this decision does not include its other assets in Canada.

The Kitimat LNG project comprises upstream resource assets in the Liard and Horn River Basins in northeast British Columbia.

Moreover, this gas would arrive via the 471-km Pacific Trail Pipeline to a liquefaction facility at Bish Cove near Kitimat.

The LNG plant includes up to three trains with a total capacity of 18 million tonnes per year.

In addition, the development plan entails getting renewable hydroelectricity from BC Hydro for the all-electric plant.

Most Popular

LNG shipping rates continue to decrease

Spot LNG freight shipping rates in both basins continued to decrease this week, while European prices increased compared to last week.

US LNG exports climb to 34 cargoes

US liquefied natural gas (LNG) plants shipped 34 cargoes during the week ending April 16. According to the Energy Information Administration, pipeline deliveries to the LNG terminals increased compared to the prior week.

Adnoc, ENN seal 15-year LNG SPA

UAE’s Adnoc has signed a 15-year sales and purchase agreement with Chinese independent gas distributor ENN to supply the latter with LNG from its LNG terminal in Al Ruwais.

More News Like This

Woodside, Uniper ink Louisiana LNG supply deal

Australia's Woodside has signed LNG sale and purchase agreements with Germany's Uniper to supply the latter from its planned Louisiana LNG project and its global portfolio.

Woodside in LNG supply talks with Germany’s Uniper

Australian LNG player Woodside confirmed on Wendesday it is in talks with Germany's Uniper over a potential LNG supply deal.

Woodside names Sarah Bairstow as Louisiana LNG head

Australian LNG player Woodside has appointed Sarah Bairstow to lead its Louisiana LNG project.

Stonepeak to take 40 percent stake in Woodside’s Louisiana LNG project

Australian LNG player Woodside has signed a binding deal with US private equity firm Stonepeak to sell 40 percent of its Louisiana LNG project.