Must wait until 2014 to know Kitimat LNG’s fate

A Chevron vice president has said that an investment decision won't be final until 2014.

An August 2 statement from Chevron Canada vice president of upstream and natural gas George Kirkland has put 2014 as the date of an investment decision on Kitimat LNG.

Kitimat LNG, which currently has a 20 year export licence and all required environmental permits, is a partnership of Chevron Canada and Apache.

Kirkland was speaking to analysts during a conference call when he said people will have to wait until 2014.

The Sentinel tried to arrange and interview with Kirkland, but did receive a short update from Chevron communications spokesperson Gillian Riddell.

She explained that Kitimat LNG is still in the process of putting together their Front End Engineering Design (FEED) study, and that once it’s complete will give Apache and Chevron a solid understanding of the economics and logistics of construction the liquefied natural gas plant, which will from there lead to a final investment decision.

“The current focus of the FEED phase is on finalizing the LNG plant, pipeline and upstream basis of design and execution,” she wrote. That includes a focus on marketing the LNG to Asian customers.

She did say that early work is ongoing at the site, which includes clearing and foundation preparations for the plant.

They are also upgrading the existing forestry service road to the site to a paved all-weather road, and are preparing the construction camp and yard at the former Eurocan site.

We asked about competition between B.C. and Australia for LNG exports, and Riddell noted that global LNG markets are very competitive, and that Chevron has two projects in development in Australia at the moment, one called Gorgon and another Wheatstone.

“All these projects are following their own unique timelines, and all projects are developed on their own merits,” she said. “Gorgon is expected to deliver its first LNG cargo in 2015, and Wheatstone in 2016.”

Kitimat LNG, she continued, “has many advantages,” which includes Chevron and Apache’s stake in a large gas deposit in the Horn River and Liard basins, First Nations benefit agreements, and the environmental and regulatory approvals.

The Kitimat LNG site, a proposed initial five million tons a year plant, is expected to be supplied by the proposed Pacific Trail Pipeline.

As of February this year, Chevron and Apache both share a 50 per cent stake in the Kitimat LNG project.

Just Posted

B.C. Legions in need of young members to continue aiding veterans into the future

Lest we forget what thousands of men and women did to fight for Canada’s freedoms – but without new membership, many Legion chapters face dwindling numbers

Kitimat commits itself to the global fight against polio

Mayor Phil Germuth signs a proclamation

$2 million landfill capping complete

The purpose is to minimize potential leaching of contaminants from the site.

Pipeline company urges rejection of many seeking intervener status in jurisdictional hearings

Those seeking to participate include District of Kitimat and Haisla Nation

North Coast figure skater to star in Dancing On Ice

Carlotta Edwards learned to skate in Prince Rupert, before becoming a star with millions of viewers

VIDEO: Amazon to split second HQ between New York, Virginia

Official decision expected later Tuesday to end competition between North American cities to win bid and its promise of 50,000 jobs

Canada Post no longer guarantees delivery times amid more rotating strikes

The Canadian Union of Postal Workers closed two major processing centres in Ontario and B.C.

B.C. city councillor resigns as AutismBC director amid SOGI controversy

AutismBC president Gary Robins says Laurie Guerra’s resignation is effective Nov. 12

McGill students vote overwhelmingly to change Redmen team nickname

Student union held a referendum after a campaign by Indigenous students

B.C. university Pride group replaces white supremacy posters

Around 50 people walked through downtown Victoria to share posters of love

B.C. to invest $492 million in affordable homes

72 new projects are part of a 10-year, $1.9-billion strategy

Around the BCHL: Surrey Eagles sliding and Cassidy Bowes flows

Around the BCHL is a look at what’s happening in the league and around the junior A world.

Pit bull cross, chihuahua owners must split costs for dogfight damage, judge rules

Eac side responsible for $577.43 towards injuries in Comox Valley incident

3 random words mark every spot on earth

Innovative mapping system assigns three word combinations to 57 trillion 3 metre squares

Most Read