Apache Corporation is going to drop the Kitimat LNG project entirely, leaving Chevron as the sole proponent of the project for the moment.
Apache didn’t indicate when the exit would occur in their second quarter financial report.
“Consistent with the company’s ongoing repositioning for profitable and repeatable North American onshore growth, Apache intends to completely exit the Wheatstone and Kitimat LNG projects,” said their repot.
Wheatstone LNG is an Australian-based liquefied natural gas project.
Kitimat LNG has all of its required permits and licences but has been undergoing a lengthy front-end engineering and design study which would finalize a price tag and move the company towards making a final investment decision.
Media reports had indicated Apache was under pressure by investors to leave Kitimat LNG, and the company had indicated they were interested in reducing their 50 per cent stake in the Kitimat-based LNG project.
Apache communications advisor Paul Wyke said the company wasn’t providing more details other than what was included in their financial report.
Their financial reports show Apache has spent $339 million on Kitimat LNG so far in 2014, $183 million in the first quarter and $155 million in the second.
Between Kitimat LNG and Wheatstone the company has spent $894 million so far in the year.
We contacted Chevron for comment about this announcement however the company said they had no comment at this time about what it would mean for their operations.