Chevron’s Christmas Gift to Itself is a Natural Gas Grab
Chevron Corporation (NYSE:CVX) fell nearly 1 percent during Monday’s shortened trading session despite (or helped by) its announcement of what promises to be an “attractive opportunity.” Chevron acquired a 50 percent operating interest in the Kitimat liquefied natural gas project and the proposed Pacific Trail Pipeline, as well as a 50 percent interest in oil and gas rights in the Horn River and Liard Basins in Columbia, Canada.
“This investment grows our global LNG portfolio and builds upon our LNG construction, operations and marketing capabilities. It is ideally situated to meet rapidly growing demand for reliable, secure, and cleaner-burning fuels in Asia, which are projected to approximately double from current levels by 2025,” said George Kirkland, Chevron’s vice chairman.
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One of the most valuable perks of the deal is that the Kitimat LNG project already has a license from the Canadian National Energy Board to export 10 million tons of LNG per year.
Gary Luquette, president, Chevron North America Exploration and Production, added in the press release: “This investment by Chevron Canada Limited captures significant resource and acreage in proven and emerging natural gas basins in Canada, and is a key opportunity to expand our overall North America exploration and production portfolio. It will enable our North America operations to play an increasingly important role in Chevron’s global growth.”