Chevron needs partner, contracts before moving on Kitimat LNG, CEO says

Sep. 12, 2014 12:34 PM ETChevron Corporation (CVX) StockCVXBy: Carl Surran, SA News Editor
  • Chevron (CVX -0.8%) needs to find a partner, secure natural gas contracts and assess engineering costs before making a final investment decision on its Canadian liquefied natural gas project in Kitimat, CEO John Watson says.
  • “We have an advantaged resource in the Horn River basin, but the costs are very high. You have to have good alignment with partners," Watson says, so the company is working with aboriginal groups in the area and performing initial work on the site.
  • British Columbia is closer to Asian markets than some competing parts of the world including the U.S. Gulf Coast, but the latter area's projects that are moving ahead because existing infrastructure makes them easier to develop, the CEO says.

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