Chevron Canada Ltd. says it will stop funding further feasibility work on its proposed Kitimat LNG project on B.C.'s north coast.
The company holds a 50% stake in the project in a joint venture with Australia's Woodside Petroleum Ltd. Chevron, which is the project operator, put its interest up for sale in December 2019, but has failed to find a buyer.
When the company put its stake up for sale, Chevron said it would continue to work with Woodside on agreed project activities that brought value or were required for regulatory and operational compliance.
But in a statement on its website this week, Chevron says that it now plans to stop Chevron-funded further feasibility work.
The project includes upstream resource assets in the Liard and Horn River Basins in northeast B.C., the proposed 471-km Pacific Trail Pipeline and plans for a natural gas liquefaction facility at Bish Cove near Kitimat, B.C.
In a joint statement, Conservative federal natural resource critic Greg McLean, and jobs critic Pierre Poilievre, said unpredictable and changing regulations yb the Liberal government were driving investment out of Canada.
The estimated $24-billion investment would create 4,500 construction jobs, and help displace dirtier and more expensive energy fuels such as coal, they said.
“Losing this project would be a major blow for local First Nations that support the project and would see investments and good paying jobs leave their communities. Failing to get this project built is not only a lost opportunity to reduce global emissions, it is also a lost economic opportunity for local First Nations communities and the rest of Canada,” they said.
“This project, representing a $24-billion investment and 4,500 construction jobs plus ongoing employment, reflects everything the Liberal government says it wants in an energy project, including rigorous indigenous consultation and environmental considerations. It is concerning that even a project like this has trouble being built in Canada.”
— with files from The Canadian Press
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