Buyer/seller tensions could impact LNG projects, Chevron CEO says

|About: Chevron Corporation (CVX)|By:, SA News Editor

Oil-linked liquefied natural gas prices make the most sense for Asian buyers, but a lack of consensus among buyers and sellers could impact proposed projects, Chevron (CVX) CEO John Watson says.

In that vein, CVX and partner (APA) are proposing the Kitimat LNG export project on Canada's west coast, but CVX did not include Kitimat in the list of projects expected to get a final investment decision by 2016 in today's presentation to investors; CVX says it first must secure long-term supply deals for 60%-70% of production.

Shell also is proposing a project on the British Columbia coast but has backing from Asian partners, while Asian companies Cnooc and Petronas also are eyeing projects to feed their home markets.