Emboldened by its maiden foray into LNG operatorship at the Gorgon and Wheatstone developments in WA's North, Chevron has taken over the running of another mega-project, this time in Canada.
Chevron and one of its Wheatstone partners, Apache, have signed a deal to take a 50 per cent stake each in the 10 million tonne a year Kitimat LNG project.
Apache owned 40 per cent of and operated Kitimat but has increased its stake as part of Chevron's buy-out of the two erstwhile minority players, EOG and Encana.
The complex deal involves equalisation payments between Apache and Chevron and will leave Apache with proceeds of $US400 million ($383 million).
Kitimat LNG is undergoing front-end engineering and design work and early site works have begun. Environmental approvals are in place, as is a 20-year export licence from Canada's Government.
Apache has spoken of a $US7.9 billion start-up cost for Kitimat's first processing train, with a first production target of 2016.
The project is based on shale gas resources in the Liard and Horn River basins in northern British Columbia, and a 463km Pacific Trail pipeline to transport the gas across the Rocky Mountains to the Canadian port town of Kitimat.
In June, Apache chief operating officer Rodney Eichler likened Kitimat to the 8.9mtpa Wheatstone - Apache has a 13 per cent stake in the development near Onslow - because of its proximity to Asian LNG customers. "It is the same sailing distance to Tokyo as it is from the North West Shelf in Australia and it's six days shorter than sailing (from the) Middle East, the principal suppliers being Qatar," he said.
Gorgon marked Chevron's arrival as an LNG project developer and operator, although it has been an active participant in the Angola LNG development, which is scheduled to dispatch its maiden cargo early next year. Gorgon's construction start in 2009 was followed by Wheatstone in 2011. A lot of LNG 34.5m The number of tonnes of installed LNG production across Chevron's three operated ventures, Gorgon, Wheatstone and now Kitimat