Chevron grows portfolio with operating interest in Canada LNG project

27 December 2012, Sweetcrude, Houston – Chevron Corporation has announced that its Canadian subsidiary, Chevron Canada Limited, will acquire a 50 percent operating interest in the Kitimat liquefied natural gas, LNG, project.

“The Kitimat LNG development is an attractive opportunity that is aligned with existing strategies and will drive additional long-term production growth and shareholder returns,” said George Kirkland, Chevron Corporation’s vice chairman, in a statement from the company’s headquarters in San Ramon, California, United States.

“This investment grows our global LNG portfolio and builds upon our LNG construction, operations and marketing capabilities. It is ideally situated to meet rapidly growing demand for reliable, secure, and cleaner-burning fuels in Asia , which are projected to approximately double from current levels by 2025.”

Under the terms of the agreements, Chevron Canada Limited will acquire all of the interests currently owned by affiliates of EOG Resources Canada Inc. and Encana Corporation in the proposed Kitimat LNG Project.

Thereafter, Chevron Canada Limited will equalize interests with an Apache Corporation subsidiary, resulting in Chevron Canada Limited and Apache each holding a 50 percent interest in both the Kitimat LNG Project. Operatorship of the facility will transfer to Chevron Canada Limited.

The proposed two-train Kitimat LNG Project , currently progressing through the Front-End Engineering and Design, FEED, phase, has a Canadian National Energy Board license to export 10 million tons per annum of LNG.

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