Chevron stops funding Kitimat LNG

Chevron Canada Ltd. has stopped funding feasibility work for the proposed 18-million tonne/year (tpy) Kitimat LNG plant. In December 2019, Chevron announced plans to divest its 50% share in the project but has not found a buyer.

Kitimat LNG is a 50:50 joint venture between Chevron and Woodside Energy International (Canada) Ltd. The Chevron-operated project comprises upstream resources in Liard and Horn River basins in northeast British Columbia, the proposed 471-km Pacific Trail pipeline, and the LNG plant at Bish Cove near Kitimat, BC.

Woodside intends to continue to advance the project. The company recorded a $720-million after-tax writedown on it against its 2019 earnings (OGJ Online, Feb. 12, 2020).

Kitimat LNG would use three 6-million tpy trains and be powered by hydroelectricity supplied by BC Hydro.