Chevron needs partner, more agreements before deciding on Kitimat LNG
By JEREMY vAN LOON
Bloomberg
Chevron Corp. needs to find a partner, secure natural gas contracts and assess engineering costs before making a decision on its Canadian liquefied natural gas project in Kitimat.
Chevron is continuing to work with aboriginal groups in the area on the northwestern coast of British Columbia and doing initial work on the site, said CEO John Watson, in a briefing in Calgary with reporters today.
“We’ve seen pressure on LNG projects around the world,” he said.
“We have an advantaged resource in the Horn River basin, but the costs are very high. You have to have good alignment with partners.”
Chevron is one of a handful of companies considering exporting natural gas from British Columbia. The Canadian province is closer to Asian markets than some competing parts of the world including the US Gulf Coast, and demand for energy, including LNG, continues to grow, Watson said.
At the moment, LNG projects “moving ahead” are those in the Gulf Coast where existing infrastructure makes those projects easier to develop, he said.
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