Woodside seeks exit for struggling Kitimat LNG project

  • Date: 18-May-2021
  • Source: Energy Voice
  • Sector:Oil & Gas
  • Country:Middle East
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Woodside seeks exit for struggling Kitimat LNG project

Australia’s Woodside Petroleum said today that it has decided to exit its 50% non-operated interest in the proposed Kitimat liquefied natural gas (LNG) export project in Canada. However, finding a buyer for the Chevron-operated development, will prove challenging.

Chevron announced its plan to divest its 50% share of Kitimat LNG in December 2019. But the US giant has yet to find any buyers. In March this year, Chevron said it was halting all spending on the project following its unsuccessful divestment process.

Chevron called its withdrawal part of a “global portfolio optimisation effort focused on improving returns and driving value.” Put another way, the economics of Kitimat LNG do not stack up.