Australia’s leading liquefied natural gas producer says it’s pulling out of an LNG export facility at Grassy Point, north of Prince Rupert.
Woodside Petroleum says it’s making the move so that it can concentrate on another LNG project site near Kitimat.
The company has announced it won’t renew an agreement to develop the North Coast operation after the rights to the region expired in mid-January.
Instead, Woodside says it will maintain its 50 per cent interest in the Kitimat LNG project, where it has partnered with Chevron.
A note on Woodside’s website says it has signed benefit agreements with all 16 First Nations along the right of way for the proposed Pacific Trail LNG pipeline to Kitimat from Summit Lake.
Earlier this week, Reuters reported that Chevron may be interested in selling its stake in Kitimat LNG. One of the potential buyers is Petronas, which pulled out of its $36 billion project near Prince Rupert last year.
Sources that spoke to Reuters on condition of anonymity say that Chevron may also not proceed with the sale.
(Reuters, The Canadian Press)