From the outset of the proposed $50 billion Kitimat LNG processing plant, the Canadian project was riddled with setbacks. In a 50/50 joint venture between Chevron and Australian giant Woodside Petroleum, the partners looked to build the world’s first all-electric LNG terminal in Bish Cove, BC, pinning its hopes on growing Asian markets. That was 10 years and nearly $3 billion ago. Reese Energy Consulting today is following the latest news from Kitimat LNG, which for all intents and purposes has waved a white flag. By all accounts, the project was full of grandeur and included flowing natural gas from the Liard and Horn River basins operated by Chevron and Woodside via a new 471-mile pipeline to a four-stack processing plant powered by renewable hydroelectricity to produce 18 TPA of LNG. But a witch’s brew of global industry events, i.e., depressed gas prices, faster U.S. builds and ramp ups, and recent oversupply of LNG in world markets ultimately stole Kitimat’s final breath.
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