Woodside withdraws from Kitimat LNG development project

Sinopec News.

The exit will include the divestiture or liquidation of assets, the return of assets, leases and agreements, the 480-kilometer Pacific pipeline route, and the site selection of LNG facilities in Bish Bay.

Woodside also confirmed that it will work with Kitimat joint venture participant and operator Chevron Canada to protect value during the exit.

The costs associated with exiting KLNG are expected to have an impact of approximately US$40 million to US$60 million in net profit after tax (NPAT) in 2021.

Woodside Acting Chief Executive Officer Meg O'Neill said that the withdrawal of KLNG will allow Woodside to focus on successfully providing higher-value opportunities in Australia and Senegal.

O'Neill said: “Following Chevron’s decision to withdraw from KLNG and subsequently in March 2021, the decision to stop funding for further feasibility studies, Woodside conducted a comprehensive review of our project selection and broader development portfolio.

"The Kitimat LNG program aims to develop new sources of LNG to supply the Asian market later this decade.

"Woodside is committed to making the final investment decision for the Scarborough LNG development in Western Australia in the second half of 2021, and continues to successfully implement the Senegalese offshore Sangomar oil project.

　　"Reserving an upstream location in the prolific Liard Basin provides Woodside with a low-cost option to investigate potential future natural gas, ammonia and hydrogen resources in British Columbia.

　　Cao Haibin excerpted from Hydrocarbon Processing News

　　The original text is as follows:

　　Woodside to exit Kitimat LNG

　　Woodside has decided to exit its 50% non-operated participating interest in the proposed Kitimat LNG (KLNG) development, located in British Columbia, Canada.

　　The exit will include the divestment or wind-up and restoration of assets, leases and agreements covering the 480 km Pacific Trail Pipeline route and the site for the proposed LNG facility at Bish Cove.

　　Woodside also confirmed that it will work with Kitimat Joint Venture participant and operator Chevron Canada (Chevron) to protect value during the exit.

　　The costs associated with the decision to exit KLNG are expected to impact 2021 net profit after tax (NPAT) by approximately US$40 – 60 million.

　　Woodside Acting CEO Meg O'Neill said exiting KLNG will allow Woodside to focus on the successful delivery of higher value opportunities in Australia and Senegal.

　　O'Neill said: “Following Chevron's decision to exit KLNG and subsequent decision in March 2021 to cease funding further feasibility work, Woodside undertook a comprehensive review of our options for the project and our wider development portfolio.

　　"The Kitimat LNG proposal was designed to develop a new source of LNG to supply Asian markets in the latter part of this decade.

　　"Woodside is focused on working towards the targeted final investment decision for the Scarborough LNG development in Western Australia in the second half of 2021 and the continued successful execution of our Sangomar oil project offshore Senegal.

　　"Retaining an upstream position in the prolific Liard Basin provides Woodside a low-cost option to investigate potential future natural gas, ammonia and hydrogen opportunities in British Columbia.
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