Australia's Woodside Petroleum Ltd. has dropped plans to build an LNG export plant at Grassy Point on Canada's west coast, choosing to focus on another Canadian LNG project, Kitimat, run by Chevron Corp. (NYSE: CVX).
Woodside's rights to develop the Grassy Point LNG site, about 30 km north of Prince Rupert, expired on Jan. 15, and the company said on March 7 it had decided not to renew the agreement.
"The decision was made after careful consideration of our long-term development strategy in Canada," Woodside said in an emailed statement after the step was initially reported by Canada's Globe and Mail.
"We are focusing on the Kitimat LNG project in which we are a 50% partner with Chevron," Woodside said.
The company had done little work on the Grassy Point project to export up to 20 million tonnes a year of LNG, and did not mention it in growth plans outlined last May.
The decision to scrap Grassy Point adds to a string of LNG projects that have been delayed or shelved in Canada due to a global LNG supply glut.
Woodside flagged last year that Kitimat, which has a 20-year, 10 million tonnes a year export license, was part of its growth plans for beyond 2026.
Chevron is considering selling part of its stake in Kitimat, Reuters reported this week.
2023-09-26 - LM Energy Holdings will sell more than 130 miles of pipelines, terminals and other assets in Eddy and Lea counties, New Mexico.
2023-09-26 - A U.S. appellate court has ordered that a Gulf of Mexico oil and gas lease sale must take place no later than Nov. 8.
2023-09-26 - As Chinese and Venezuelan relations grow closer, the U.S. scrambles to salvage its failed sanctions strategy against President Nicolás Maduro.
2023-09-26 - In this Hart Energy LIVE Exclusive, Clean Resource Innovation Network's Director of Operations Glen McCrimmon walks Hart Energy's Jaxon Caines through the non-profit's challenges and future investments.
2023-09-26 - BP’s 187 megawatt direct current Peacock Solar Project in Texas is part of the company’s plans to build 50 gigawatts of renewable energy capacity by 2030.