Map of the now cancelled Grassy Point LNG project. (CEAA photo)

Map of the now cancelled Grassy Point LNG project. (CEAA photo)

Australian company Woodside ends Grassy Point LNG project

Woodside and Chevron still committed to Kitimat LNG

Both Woodside Energy Ltd. and its partner Chevron remain focused on the Kitimat LNG project, following news last week that Woodside had withdrawn from its Grassy Point LNG project on the B.C. North Coast.

“Chevron and Woodside remain focused on delivering a globally competitive Kitimat LNG project that is aligned with LNG market demand,” said Chevron communications lead Ray Lord.

When pressed for comment on Woodside’s withdrawal from Grassy Point, Lord said Chevron couldn’t speculate on “potential impacts of changes related to the status of other proposed projects”.

He said Kitimat LNG had a number of advantages that was keeping the project in the running while other projects were being cancelled.

“Kitimat LNG is the only fully integrated LNG project in Canada, with common ownership throughout the entire LNG value chain, from wellhead to jetty,” said Lord.

He said another advantage for Kitimat LNG was that the Liard appraisal drilling program in northeastern B.C. had confirmed a prolific natural gas resource basin.

“In addition the project has several First Nations partnerships that are unique in the Canadian energy industry, including benefit agreements with the Haisla Nation for the LNG Plant, and an agreement with all 16 First Nations along the proposed Pacific Trail Pipeline route through the First Nations Limited Partnership (FNLP).”

He said the project would be one of the largest private capital investment projects in Canadian history and would create “transformative opportunities for British Columbians, First Nations and all Canadians.”

He said Kitimat LNG would focus on a number of key areas in 2018, including identifying further cost reduction opportunities, advocating for a competitive fiscal framework with government, progressing commercial and LNG sales agreements and maintaining engagement and support for the project with First Nations and local communities.

The withdrawal from Grassy Point LNG follows in the wake of the cancellations of Pacific NorthWest LNG’s project in July and Aurora LNG’s Digby Island project in September, as well as an announcement by WCC LNG in December last year that it was closing its Prince Rupert office due to current LNG market conditions and economic uncertainties.

“In January 2018, Woodside elected not to renew its Sole Proponent Agreement for the Grassy Point LNG site on the north-west coast of British Columbia,” reads Woodside Petroleum’s 2017 Annual Report released last month.

The liquefied natural gas (LNG) terminal site was proposed for 30km north of Prince Rupert. The Australian company began geotechnical surveys on Grassy Point in 2014.

However, the report also states Woodside’s continued interest in the Kitimat LNG project. The report describes the Kitimat project as the one of the “most advanced LNG opportunities in Canada.”

Woodside has a 50/50 joint venture in the project with Chevron.

-With files from Shannon Lough, Prince Rupert Northern View

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