Woodside Drops Grassy Point LNG Project in Favour of Kitimat LNG

Australia’s Woodside Petroleum has dropped plans to build a liquefied natural gas export plant at Grassy Point north of Prince Rupert -- as it focuses on the proposed Kitimat LNG project that it owns jointly with Chevron.

Woodside has issued a statement saying the decision had been made after careful consideration of Woodside's long-term development strategy in Canada.

Woodside has a 50-50 partnership with Chevron on the proposed Kitimat LNG project, and 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, and all government approvals are in place for the export of 10 metric tonnes per annum.

Meantime, Reuters News Agency reports that Chevron is exploring the possibility of selling its stake in Kitimat LNG -- and that one of the interested buyers is Malaysian-owned Petronas.

Neither Chevron nor Petronas has confirmed the report.   

Last year, Petronas scrapped plans to build the controversial Pacific NorthWest LNG export terminal at Lelu Island near Port Edward.