Chevron Corp. is considering putting its entire stake in the proposed liquid natural gas project in British Columbia on the block, in a blow to Canada’s aspirations to build a robust LNG industry.
“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,” the company said on Tuesday.
The San Ramon, California-based company said its Canadian unit will look for buyers for its 50 per cent interest in the Kitimat LNG Project, but set no timeline to conclude the process. Chevron’s other Canadian projects are not part of the sale.
The company said it would continue to work closely with its joint venture partner Woodside Petroleum Ltd., which owns the other half of the company, and First Nations partners during the process.
Chevron’s comments have dented some of the optimism in the Canadian natural gas sector, which had cheered the construction of the $40-billion, Royal Dutch Shell Plc-led LNG Canada project and the prospect of Pacific Oil and Gas Ltd.’s smaller Woodfibre LNG project.