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Chevron to move Kitimat LNG forward without Apache, seeks new partner


Chevron said it will seek out a new partner for a proposed natural gas export terminal on Canada’s Pacific Coast after Apache Corp. indicated it will depart from the project.

Chevron is “unconcerned” about Apache’s announcement that it will divest its stake in the Kitimat LNG project in British Columbia, Chevron vice chairman George Kirkland said during a conference call with analysts.

Chevron has already began drilling appraisal wells in the gas fields that will supply the proposed Kitimat complex, Kirkland said.

The company still is studying how much the project will cost and how long it will take to construct, key factors in a final investment decision, he said.

Apache also said that it will sell its interest in the Chevron-led Wheatstone LNG venture in Australia.

Chevron, the world’s third-largest energy producer, whose LNG plans include a $10 billion complex in Angola and the $54 billion Gorgon project in Australia, is betting demand for the fuel will begin to outpace supplies around the end of this decade.

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Editorial Comment
-Lee Nichols
Modern society would not be possible without the use of pipelines to transport natural gas, crude oil and finished products to demand centers.

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