U.S. energy giant Chevron has made a decision to cease funding the feasibility work for the proposed Kitimat LNG project in Canada.
The company revealed its plans in 2019 to divest its 50 percent interest in the proposed project in British Columbia, as part of its global portfolio optimization push.
The company noted in a brief statement that despite challenges posed by COVID-19, Chevron engaged in a process to divest while continuing to work with its joint venture partner, Woodside, on agreed project activities that brought value to the asset or were required for regulatory and operational compliance.
“At this time, it is Chevron’s intent to cease Chevron-funded further feasibility work for the proposed Kitimat LNG project,” the statement reads.
Chevron’s other assets in Canada are not included in this decision. This decision only impacts the proposed Kitimat LNG project the company said.
The proposed Kitimat LNG project is a 50/50 joint venture between Chevron Canada (Chevron) and Woodside Energy International (Canada).
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 totaling 18 million tonnes per annum and is an all-electric plant powered by clean, renewable hydroelectricity from BC Hydro.