Resource World Magazine

F E B R U A R Y / M A R C H 2 0 2 0 www.resourceworld.com 87 "Chevron will remain as operator of Kitimat LNG downstream and upstream assets until our exit from the project or transfer of operatorship," she said. "We will continue to work with our partner Woodside on agreed project activities that will proceed during the expression of interest process. Further, Chevron plans to continue with activities that bring value to the project or are required for regulatory and operational compliance." She declined to speculate on anything surrounding the sale but said if there's no interest in the share sale, the com- pany will "review its strategic alternatives, including divestment". Chevron is proud of its role in the proj- ect, with milestones that include reducing LNG unit costs by more than 45%, an advanced compact module design enabling low-coast operations, high efficiency and high availability, and incorporating a world-first all-electric plant with the lowest emissions intensity on the planet, she said. "Chevron will continue to work closely with government, First Nations and other stakeholders to progress a competitive industry in Canada that provides afford- able, reliable and ever-cleaner energy to the world," she added. But regardless of the uncertainty sur- rounding Kitimat LNG, the $40-billion LNG Canada project nearby at the mouth of the Douglas Channel remains on track to be the first such functioning plant in Canada, with an in-service date of 2024. That project will eventually have a total of 7,500 people working on the construction phase at the 400-hectare site, and that's a huge boon to Kitimat. Local government will receive industrial taxes from LNG Canada totalling $1.6 million annually during construction and $9.7 million when it's operational. "The LNG Canada project is developing well and delivering significant economic benefits to our community, the region, and First Nations," said Dewar. "As to be expected with a project of this magni- tude, there are minor challenges that our community will face such as increased housing costs, increased traffic and park- ing demands, and pressures to develop more commercial and light industrial space to meet growth." While the community is "overwhelmingly supportive" of both LNG projects, some individuals and groups oppose them and "extensive efforts" have been made to alleviate concerns and miti- gate potential negative impacts, he added. However, the LNG Canada project sus- tained a blow in early January when the breakaway five hereditary chiefs of the Wet'suwet'en First Nation issued an evic- tion notice to Transcontinental subsidiary Coastal GasLink, whose $6.6-billion pipe- line would transport natural gas from northeastern BC to the LNG Canada termi- nal in Kitimat, in part across its traditional territory near Houston, BC. The move comes despite a BC Supreme Court injunc- tion granted December 31 against the First Nation and others opposing the pipeline. The eviction notice says pipeline workers are trespassing, and reportedly workers and contractors complied with the notice. There has been no word on a potential response from the company. At the time, however, Coastal GasLink said in a state- ment it was resuming construction despite the eviction notice. While former International Energy Agency executive director Maria van der Hoeven has warned that failure to have more than one export terminal on the west coast quickly could cost Canada its position in the LNG race, Dewar said Kitimat LNG is designed to be cost-competitive and pro- duce the lowest greenhouse gas emissions in the world. "We still see this project moving ahead and look forward to welcoming the new proponent into our community." n OIL & GAS Artist's rendition of the Kitimat LNG Project. Source: Kitimat LNG.

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