Woodside Petroleum looks to sell its 50% stake in Kitimat LNG project

Woodside Petroleum Ltd. says it plans sell its 50% stake in the proposed Kitimat LNG development in British Columbia.

The Australian company says the plan includes the divestment or wind-up and restoration of assets, leases and agreements covering the 480-kilometre Pacific Trail Pipeline route and the site for the proposed LNG facility at Bish Cove.

Woodside will keep a position in the Liard Basin upstream gas resource.

Chevron Canada Ltd., the operator of the project, said earlier this year that it would stop funding further feasibility work on the project. The company put its interest up for sale in December 2019, but has failed to find a buyer.

Woodside acting-CEO Meg O'Neill said following Chevron's decision in March to cease funding that Woodside undertook a comprehensive review of its options for the project.

"The Kitimat LNG proposal was designed to develop a new source of LNG to supply Asian markets in the latter part of this decade,'' O'Neill said in a statement.

"However, we have decided to prioritize the allocation of capital to opportunities that will deliver nearer-term shareholder value.''

O'Neill said exiting the Kitimat project will allow the company to focus on higher value opportunities in Australia and Senegal.

At one-time, about 20 LNG terminals were proposed for the West Coast but the $40-billion LNG Canada project headed by Shell Canada is the only one to reach the construction stage.