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Chevron, Woodside seeks license for Kitimat LNG plant


Chevron Canada Limited and Woodside Energy Limited recently applied for a new license for their Kitimat LNG plant in Northern British Columbia that will help double in size LNG production to about 18 million tonnes per annum.

The Kitimat LNG application follows the approval last October of the massive LNG Canada project, also located in Kitimat. The project is led by Royal Dutch Shell and will initially produce 14 Mtpa, with the option to increase to 28 Mtpa.

According to Reuters, the companies submitted the application to Canada’s National Energy Board with a revised plant design that may include up to three LNG trains, instead of two.

Chevron in its statement said “Chevron and Woodside have re-evaluated the originally proposed 2-train, 10 MPTA LNG plant development concept, with a focus on improving Kitimat LNG cost of supply competitiveness relative to other global LNG projects”.

Meanwhile, Chevron Canada is a unit of global oil major Chevron Corp and Woodside is the largest Australian natural gas producer.

Also, analysts have stated that the growing LNG industry in northern British Columbia would be a boon for western Canadian natural gas producers that would supply the projects. BMO Capital Market analyst stated in his research note that “while very early days, the new LNG export license application by Chevron Canada for its Kitimat LNG project could represent a nice source of long-term demand for domestic gas in Western Canada”.

However, Chevron and Woodside, which have a 50/50 joint venture in the project, are yet to set a date for a final investment decision,FID for Kitimat LNG or disclosed cost estimates.

Source Reuters
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