Chevron looks to sell stake in Kitimat LNG project
December 11, 2019
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Chevron Corp. says it is looking to sell its 50 per cent stake in the Kitimat LNG Project in British Columbia.
The move comes as the company looks to cut spending on some investments and take a charge of at least US$10 billion because lower long-term prices for oil and natural gas will reduce the value of its assets.
Chevron told Canadian Press the decision is part of its global portfolio optimization effort focused on improving returns and driving value.
“Although Kitimat LNG is a globally competitive LNG project, the strength of Chevron Corp.’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 said in a statement. “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.”
The company said it would continue to work with its joint venture partner Woodside, government and First Nations partners during the process.
This decision only impacts Chevron’s stake in the Kitimat LNG Project. The company’s other assets in Canada are not included in the decision.
The Kitimat LNG Project is a 50-50 joint venture between Chevron Canada Ltd. and Woodside Energy International (Canada) Ltd.
It includes upstream resource assets in the Liard and Horn River Basins in northeast B.C., the 471-kilometre Pacific Trail Pipeline and a natural gas liquefaction facility at Bish Cove near Kitimat.