Chevron To Cut Funding To Canadian Kitimat LNG In 2020 Investment Plan

Chevron to Cut Funding to Canadian Kitimat LNG in 2020 Investment Plan

The Canadian branch of the Chevron Energy Corporation is planning to reduce funding to gas-related opportunities, including the Kitimat LNG (liquefied natural gas) Project in British Colombia, where it holds 50 percent of its assets, the company said

MOSCOW (Pakistan Point News / Sputnik - 11th December, 2019) The Canadian branch of the Chevron Energy Corporation is planning to reduce funding to gas-related opportunities, including the Kitimat LNG (liquefied natural gas) Project in British Colombia, where it holds 50 percent of its assets, the company said.

Chevron aims to invest in more advantaged assets to deliver higher cash returns. The company considers the project competitive but adds that its investment plans for 2020 do not include funding for Kitimat LNG.

"As a result of Chevron's disciplined approach to capital allocation and a downward revision in its longer-term commodity price outlook, the company will reduce funding to various gas-related opportunities including Appalachia shale, Kitimat LNG, and other international projects. Chevron is evaluating its strategic alternatives for these assets, including divestment," the company said in a statement issued on Tuesday.

Chevron also announced a 2020 spending program worth $20 billion. The company plans to allocate almost $17 billion to the upstream business, including development of Permian unconventional and other major projects. Approximately $2.8 billion of planned capital spending is associated with the company's downstream businesses, which refine and market fuels.

Chevron Corporation is the second largest US energy company, operating in more than 180 countries across the world. It explores for, produces and transports crude oil and natural gas, manufactures petrochemicals and additives, generates power and develops technologies.