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.