It's actually $2.12 billion CDN, $1.6 billion USD. That's the write-off Chevron is taking on its Kitimat LNG investment, an interest the company is still trying to sell.
Chevron chief executive Michael Wirth said the company made the “hard decision” to divest Kitimat LNG.
“Our assessment on the Kitimat project is, given all the other developments out there in the world, that one was going to be tough to compete versus our alternatives,” Mr. Wirth said during a conference call with industry analysts on Friday. “As an investment proposition, we just want to find the very best projects.”
Mr. Wirth noted that one of the challenges in Canada is the long distances to transport natural gas from northeastern B.C. to the West Coast.
Pacific Trail Pipeline proposes to follow a 480-kilometre route from Summit Lake near Prince George in the B.C. Interior to Kitimat LNG’s terminal site at Bish Cove. The idea is to connect with a planned 260-kilometre pipeline from northeastern B.C. to Prince George. “Canadian gas – that is quite a ways away from the Kitimat site,” Mr. Wirth said.