Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

Chevron chief executive John Watson answers questions during a news conference in Calgary on Sept. 12, 2014.

Todd Korol/The Globe and Mail

Apache Corp.'s decision to jettison its interest in a proposed multibillion-dollar liquefied natural gas project on Canada's West Coast only adds to a number of risks that face the development as competition from other countries heats up, the chief executive of Chevron Corp. says.

Chevron, one of the world's largest oil majors, is still working to advance the Kitimat LNG project in British Columbia, but there is a laundry list of unknowns that must be sorted out before the company is ready to make a final investment decision, CEO John Watson said.

They include a set of fiscal terms from the B.C. government, agreements with First Nations along the proposed pipeline route, a final estimate of costs and the signing of supply contracts with Asian buyers. Mr. Watson said Chevron has not set a deadline to move forward.

Story continues below advertisement

Last month, Houston-based Apache, under pressure from an activist investor, said it would pull out of the Kitimat LNG project, leaving Chevron to wait until a buyer for the stake surfaces.

"We continue to make progress at the site, on the pipeline, with First Nations peoples and with the government. So we're continuing to prosecute the work, and have had reasonable alignment with the partner in doing that," Mr. Watson told reporters before speaking to an audience of executives at the Spruce Meadows equestrian facility on Calgary's outskirts.

"Obviously we need to get the ownership sorted out before we can move the project forward in a significant way," he said.

There are 17 separate proposals to build LNG facilities on the West Coast, and none has made a decision to begin building. One major sticking point has been the inability between buyers and sellers on establishing contract pricing for the LNG.

Mr. Watson said Canada has advantages as it seeks to become an important player in LNG, including relatively close proximity to Asian markets and massive natural gas reserves in B.C. However, it faces competition for other countries that are further ahead with projects, including the United States and Australia. The proposed locations of the Canadian plants are considered remote, creating challenges for labour and materials transport.

"There's a great deal of effort that's required and you have to have good alignment amongst partners as well," he said. "And we'll move the project forward when we have those things in place. There will be demand for the product."

Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies