Chevron halts funding for Kitimat LNG

Chevron has ceased funding for the proposed Kitimat LNG project in Western Canada, the US major's Canadian subsidiary said March 17, after failing to find a buyer for its 50% interest.

Chevron Canada Ltd. in December said it planned to sell off its 50% stake in the proposed Kitimat LNG project, an export facility planned for the coast of British Columbia. After failing to do so, the company last week said it would no longer fund any additional feasibility studies for the LNG project. The Canadian subsidiary of Australian energy company Woodside is the 50:50 joint venture partner in the project, but had no response to Chevron’s announcement.

Kitimat LNG includes midstream infrastructure and a natural gas liquefaction facility. With three trains, the proposed plant has a design capacity of 18mn metric tons/year.

Woodside acquired its 50% stake in 2015 from Apache, along with the US company's interest in the Wheatstone LNG project in Australia. The transaction was valued at $2.75bn.

(map courtesy of Chevron Canada Ltd)