If Chevron divests 50 per cent share in $40 billion LNG project, it wouldn’t the first time it changed hands
Chevron Corp. is taking a US$10 billion to US$11 billion write-down and is considering selling some of its assets, including its 50 per cent stake in the Kitimat LNG project.
The company has revised its revenue projections in the light of an oil and gas glut in the U.S. and depressed natural gas prices and is tightening its belt. The company attributes about half of the tax impairment to its Appalachia shale assets.
The company says it is considering selling some of its shale assets in the U.S. and its 50 per cent share in Kitimat LNG, which just recently received a new 40-year LNG export license from the Canada Energy Regulator.
“As a result of Chevron’s disciplined approach to capital allocation and a downward revision in its longer-term commodity price outlook, the company will reduce funding to various gas-related opportunities including Appalachia shale, Kitimat LNG and other international projects,” the company said in a press release December 10. “Chevron is evaluating its strategic alternatives for these assets, including divestment.”
The other partner in the Kitimat LNG project is Australia’s Woodside Energy. The Kitimat LNG project was the first major LNG project to be proposed in B.C. and has changed hands before.