Woodside Tight Lipped On Canadian LNG Expansion

By Glenn Dyer | More Articles by Glenn Dyer

Not a word yesterday from Woodside Petroleum about a report that it and partner Chevron Canada want to nearly double the size of its Kitimat LNG plant in Western Canada.

Reuters reported yesterday that Woodside subsidiary, Woodside Energy and Chevron’s Canadian arm had have applied for a new licence for their Kitimat LNG plant in northern British Columbia that could see it produce 18 million tonnes a year.

The companies submitted the application to Canada’s National Energy Board on Monday, with a revised plant design that may include up to three LNG trains, instead of two.

“Chevron and Woodside have re-evaluated the originally proposed 2-train, 10 MPTA LNG plant development concept, with a focus on improving Kitimat LNG cost of supply competitiveness relative to other global LNG projects,” Chevron said in a statement on Wednesday reported by Reuters.

The Kitimat LNG application follows the approval last October of the separate massive LNG Canada project, also located in Kitimat. That project is led by Royal Dutch Shell and will initially produce 14 million tonnes a year of LNG, with the option to increase to 28 million tonnes a year.

“While very early days, the new LNG export licence application by Chevron Canada for its Kitimat LNG project could represent a nice source of long-term demand for domestic gas in Western Canada,” BMO Capital Market analyst wrote in a research note.

Chevron and Woodside, which have a 50:50 joint venture in the project, have not yet set a date for a final investment decision for Kitimat LNG or disclosed cost estimate, according to the Reuters report.

Woodside shares dipped 2% yesterday to $34.13.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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