It may be a slower year for LNG in Kitimat even as companies stand by projects

Shell and Chevron are standing by their Kitimat-based projects, while Chevron's plan may slow locally in Kitimat for 2015.

Shell, the primary partner in the venture which is proposed to build LNG Canada in Kitimat, still sees the Kitimat project as a priority even as the company has put the covers back on a project in Queensland, Australia.

Arrow LNG was a venture between Shell and PetroChina, which is one of the LNG Canada partners, along with Mitsubishi and KOGAS.

The Sydney Morning Herald reported on January 30 that the company announced the project had been shelved in favour of Shell’s North American prospects.

In seeking a comment on these developments, an LNG Canada spokesperson told the Sentinel that “LNG Canada remains focused on moving our project forward and securing the permits and regulatory approvals necessary for our partners to make a final investment decision.”

In other LNG news, Chevron’s Kitimat LNG project may see a slow down in its progress over the next year.

In a quarterly call with investors, Chevron CEO John Watson  says the Kitimat LNG project will see a slow down in 2015 as early works projects slow down and the company looks to focus on the upstream assets.

A spokesperson for Kitimat LNG said the company is still committed to the project.

“As 2015 unfolds our focus remains on completing the front end engineering and design (FEED) work that we’re doing,” said Ray Lord.

But the work done so far means 2015 will slow down for Kitimat.

“As a result of the progress we’ve made to date, in 2015 there will be a decrease in engineering and early site work associated with the LNG plant and the pipeline,” he said.

The Kitimat LNG office will remain open downtown, he said.

“We don’t consider this a race,” he added, saying the intention is to go at the right pace “to get to the market at the right time.”

 

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