Site Preparation Continues on Kitimat LNG Project, But No Final Investment Decision Yet

8/1/2017

A spokesperson for Chevron Canada says the company remains convinced there will be a  demand for liquefied natural gas in Asian markets sometime in the middle of the next decade, and Kitimat is a good location to build an export terminal.

Ray Lord, who's in charge of communications for the company, says while the pace of the Kitimat LNG project has been reduced due to global economic conditions and falling energy prices, there is still a fair bit of site work going on.

One of the most visible jobs ahead for Chevron, and its co-venture partner Woodside Energy, is the dismantling of buildings on the former Eurocan Pulp Mill site.

"We've identified several structures and some pipeways and so on that are part of our Summer 2017 work program to remove that, but essentially one of the larger structures that may be more noticable is a former sawmill building on that site which is among the larger buildngs to be removed and again this is part of a very longterm remediation and reclamation program that we have underway at that site," Lord said.

If the project does go ahead, the old Eurocan site will be the location of a lay-down area and worker accomodation area during the construction of the plant at Bish Cove.

Lord says a final investment decision on the Kitimat LNG project still depends on markets improving, but in the meantime, the company is working to try to improve the project's cost-competitiveness.

He also says Chevron continues to work with the new John Horgan government in Victoria, as it did with the former Christy Clark government.