Chevron Says Apache’s Exit Won’t Doom Kitimat LNG in Canada

Aug 01, 2014 12:07 pm ET

Aug. 1 (Bloomberg) -- Chevron Corp. 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 yesterday that it will divest its stake in the Kitimat liquefied natural gas project in British Columbia, Chevron Vice Chairman George Kirkland said during a conference call with analysts today.

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 yesterday 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.