Chevron and Apache are leading the way in Canada's emerging liquefied natural gas (LNG) industry.
Along with our co-venturer Apache Corporation, Kitimat LNG will operate as an export facility for liquefied natural gas sourced from British Columbia's Horn River and Liard basins.
- All major provincial and federal environmental approvals in place
- NEB export permit volume: 10 million tonnes per year
- Benefits agreements signed with 15 First Nations
- Will create an estimated 4,500 construction jobs between the LNG facility and Pacific Trail Pipeline that will be filled by British Columbians first
- Projected number of LNG shipments: five to seven per month
Kitimat LNG is the most advanced of the proposed Canadian LNG projects and has the potential to be the first LNG project of its size in Canada to deliver LNG to Asia-Pacific markets. The Kitimat LNG project will bring significant benefits to British Columbians including new jobs, business opportunities and revenue to the provincial government that has the potential to benefit health, education and transportation infrastructure across British Columbia. Significant investment has already been made towards developing the proposed Kitimat LNG facility site, natural gas Pacific Trail Pipeline and natural gas resources in the Horn River and Liard Basins.
In December 2012, Chevron Canada Limited and Apache Corporation signed a 50/50 joint venture agreement to build the Kitimat LNG project. Under this agreement, Chevron will operate the LNG facility at Bish Cove near Kitimat, B.C, the natural gas Pacific Trail Pipeline and market LNG to customers, while Apache will manage the development and production of natural gas from British Columbia's prolific natural gas resource in the Liard and Horn River Basins in Northeast British Columbia.
The proposed Kitimat LNG facility will be built on land leased under a unique benefit agreement with the Haisla Nation. The facility will include two liquefaction trains to cool the natural gas to a liquid state, LNG storage tanks and a marine jetty and berth to accommodate specialized LNG carriers. Kitimat LNG has a National Energy Board (NEB) license to export up to 10 million tonnes of LNG per year. Natural gas will be delivered to the facility by the proposed 480 kilometre Pacific Trail Pipeline from Summit Lake, B.C. to Kitimat. Fifteen First Nations along the proposed natural gas pipeline route have signed the innovative First Nations Limited Partnership agreement which will deliver specific economic as well as employment, training, and contracting benefits to First Nations for the lifetime of the project.
- Kitimat LNG is currently in the Front End Engineering and Design (FEED) phase.
- Engineering, procurement and construction contract for the LNG facility awarded to JGC/ Fluor consortium in January, 2014.
- Key federal and provincial government regulatory permits are already in place.
- Early preparation work began at the facility site at Bish Cove, near Kitimat in 2011 and full construction of the facility will begin as soon as Final Investment Decision is made.
- A Final Investment Decision will require a stable fiscal framework, greater cost and execution certainty, additional First Nations support and firm LNG sales agreements.