Undeterred by the collapse in crude prices, ExxonMobil Corp. (NYSE: XOM) is pushing ahead with plans to spend as much as a $21 billion (C$25 billion) on a project to export LNG from Canada, Bloomberg reported Jan. 12.
The company, along with Canadian affiliate Imperial Oil Ltd. (NYSE: IMO), is seeking to build a facility on the Pacific Coast that would initially liquefy and export 15 million metric tons of LNG a year, according to an environmental review application submitted last week to the British Columbia provincial government.
Exxon’s WCC LNG Project Ltd. is among 18 export facilities that have been proposed for Canada’s Pacific Coast, cooling gas from British Columbia for shipment by tanker to Asian markets. Petroliam Nasional Bhd. last month deferred a decision to build its about $30.5 billion (C$36 billion) LNG project in Canada, citing low oil prices. BG Group Plc has also delayed its proposal.
Global oil prices have fallen by more than 55% since June amid a supply glut and waning demand forecasts. In Asia and other large LNG markets, prices usually are indexed to crude oil. Exxon, with LNG investments from Qatar to Papua New Guinea, has an edge over competitors because of its experience from gas production to LNG marketing, the company said.
Construction would start in 2017, with first shipments in 2024 for the proposal. As many as 6,000 workers would be on site at the peak of construction for the first phase.
WCC LNG was initially scheduled to begin exports in the 2021 to 2023 timeframe, according to a June 2013 filing with Canada’s National Energy Board.
Recommended Reading
Which Haynesville E&Ps Might Bid for Tellurian’s Upstream Assets?
2024-02-12 - As Haynesville E&Ps look to add scale and get ahead of growing LNG export capacity, Tellurian’s Louisiana assets are expected to fetch strong competition, according to Energy Advisors Group.
EQT Ups Stake in Appalachia Gas Gathering Assets for $205MM
2024-02-14 - EQT Corp. inked upstream and midstream M&A in the fourth quarter—and the Appalachia gas giant is looking to ink more deals this year.
ONEOK CEO: ‘Huge Competitive Advantage’ to Upping Permian NGL Capacity
2024-03-27 - ONEOK is getting deeper into refined products and adding new crude pipelines through an $18.8 billion acquisition of Magellan Midstream. But the Tulsa company aims to capitalize on NGL output growth with expansion projects in the Permian and Rockies.
Williston Warriors: Enerplus’ Long Bakken Run Ends in $4B Chord Deal
2024-02-22 - Chord Energy and Enerplus are combining to create an $11 billion Williston Basin operator. The deal ends a long run in the Bakken for Enerplus, which bet on the emerging horizontal shale play in Montana nearly two decades ago.
EQT, Equinor Agree to Massive Appalachia Acreage Swap
2024-04-15 - Equinor will part with its operated assets in the Marcellus and Utica Shale and pay $500 million to EQT in exchange for 40% of EQT’s non-operated assets in the Northern Marcellus Shale.