Question Period Note: Kitimat LNG – Chevron exit

On March 17, 2021, Chevron Canada announced that it would cease funding Kitimat LNG project feasibility work. The company announced in December 2019 that it plans to exit its 50 percent working interest in the Kitimat LNG Project in British Columbia, as part of global portfolio optimization efforts. Chevron’s other assets in Canada are not included in this decision.
Australia’s Woodside Energy – which also has a 50 percent interest in the project – indicates it continues to have confidence in the project, and will work with Chevron to determine mutually acceptable means of advancing the project as Chevron exits. Woodside continues to work with stakeholders to improve the project’s cost competitiveness. Chevron will remain as operator of the project until its exit from the project or transfer of operatorship.

• While the Government of Canada is disappointed by Chevron Canada’s announcement, we believe this project has great potential.
• Canadian LNG presents tremendous economic opportunity for Canadians, and the government will continue to support good LNG projects that will create jobs for local communities, Indigenous partners, and Canadians across the country, while also helping the world transition to a low-carbon energy future.
• This includes the $40 billion LNG Canada project – the single largest private sector investment in Canadian history, which will create 10,000 jobs at the height of construction.
• We will continue to work with the government of British Columbia and the project proponents going forward.
If pressed on the future of Kitimat LNG
• Kitimat LNG, powered by renewable hydroelectricity, has the potential to be one of the lowest intensity LNG facilities in the world, up to 90% lower than global competitors.
• We are encouraged by the fact that Woodside Energy – the other 50% partner in this project – has reiterated its commitment to the project and to Indigenous partners.
• Woodside indicated it would continue work to advance the project, including working with stakeholders to improve the project’s cost competitiveness and we will continue to work with them in this process.

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