kitimat LNG project

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Rendering of Chevron

Chevron Canada Update re Kitimat LNG Project
December 10, 2019

Chevron Canada Limited (Chevron) plans to exit its entire 50 percent working interest in the Kitimat LNG Project in British Columbia. The Kitimat LNG Project decision is part of Chevron’s global portfolio optimization effort focused on improving returns and driving value.

Although Kitimat LNG is a globally competitive LNG project, the strength of Chevron Corporation’s global portfolio of investment opportunities is such that the Kitimat LNG Project will not be funded by Chevron and may be of higher value to another company.

Chevron intends to commence soliciting expressions of interest for its interests in the Kitimat LNG Project. No timeline has been set to conclude this process.

This decision only impacts Chevron’s interests in the Kitimat LNG Project. Chevron’s other assets in Canada are not included in this decision.

Chevron will continue to work closely with our joint venture partner Woodside, government and First Nations partners during this process.

The proposed Kitimat LNG Project is a 50/50 joint venture between Chevron Canada Limited (Chevron) and Woodside Energy International (Canada) Limited (Woodside). The Chevron-operated project comprises upstream resource assets in the Liard and Horn River Basins in northeast B.C.; the 471-km Pacific Trail Pipeline (PTP); and a natural gas liquefaction facility at Bish Cove near Kitimat. The Kitimat LNG Plant includes up to three LNG trains totalling 18 million tonnes per annum (6.0 MTPA/train), and is an all-electric plant powered by clean, renewable hydroelectricity from BC Hydro.

Kitimat LNG has established First Nations partnerships that are unique in the Canadian energy industry and has received strong support from local Indigenous communities across the entire value chain. Kitimat LNG has a benefits agreement with the Haisla Nation for the LNG Plant that is located on Haisla Nation Reserve land, and an agreement with all 16 First Nations along the proposed Pacific Trail Pipeline route through the First Nations Limited Partnership (FNLP). These agreements include training, employment, goods and services contracting, environmental stewardship and financial benefits to our First Nation partners.

For the latest figures, view the 2019 Supplement to the Annual Report.