“I think that what we are satisfied with is that the British Columbia government is very attentive to the realities of the industry,” President of Chevron, Jeff Shellebarger told the Globe and Mail.
Chevron’s third-quarter profit, reported on Friday, rose 13 per cent to $5.59 billion U.S.
There are so far 18 proposed LNG projects slated for B.C., however, industry analysts predict only four at most will be fully developed, with the Chevron-led Kitimat venture ranking among the top proposals.
Shellebarger has also gone on record to say the company is confident of the shale gas pay in the Liard and Horn River basin, quoted as saying, “We think that the low-cost, potentially prolific reserves up in the Liard and Horn River are going to make an attractive LNG project in time.”
Shellebarger also recently announced the company’s not going to make a final investment decision until they secure at least 60 per cent of their LNG production from northwestern B.C. to Asian customers, which Scotia Capital predicts will take until the fall of 2015.
Chevron was originally signed to a 50/50 partnership with Apache Corp. in regard to the Kitimat LNG project, but Apache announced in July that they’re exiting the joint venture.
When Chevron was a partner with Apache, they formerly targeted the start of production for 2015, but industry experts now say the earliest time they could launch an LNG export is 2020.
Throughout the ongoing uncertainty of proposed LNG projects, British energy firm BG Group PLC said last week that its original target for a final investment decision of its Prince Rupert LNG project, slated for 2016, will now be delayed.
Industry analysts say BG Group will likely wait until the fall of 2017 before making their final decision.
With files from The Globe and Mail