Chevron is in talks with potential buyers for Canada's first
exports of liquefied natural
gas, paving the way for a $15 billion project that would open up a new
route for North American gas to Asia, the Financial
Times reports Wednesday.
Chevron aims to sign contracts to sell about 60-70% of the
gas ahead of the project, the report says.
The planned Kitimat plant on Canada's west coast would
export shale gas from fields in British Columbia in the form of
The fields hold an estimated 50 trillion cubic feet of gas, the
The project is a 50-50 joint venture between Chevron and US
independent oil and gas group Apache. The project has already gained an export
license and permission to build a pipeline from the plant site
to the coast.
At capacity, it would produce 10 million tpy of LNG,
the report adds.
The report says that Chevron is keen to price the gas in
relation to oil, which is higher than the price of natural
gas. Japanese buyers have, however, recently taken
advantage of cheaper North American shale gas to negotiate LNG
contracts linked to the US natural
gas benchmark, according to the report.
Dow Jones Newswires