Monday, August 10, 2020
Hawai'i Free Press

Current Articles | Archives

Wednesday, March 13, 2013
Chevron Drives Kitimat LNG Export Project Forward
By Michael Hansen @ 7:38 PM :: 5263 Views :: Energy, Jones Act

Chevron Drives Kitimat LNG Export Project Forward

by Michael N Hansen, President, Hawaii Shippers Council

The Financial Times reported on March 12th that John Watson, President and CEO, Chevron Corporation, said at a recent presentation to analysts in New York that they would be seeking long term contracts  based on the price of oil for exports from their newly acquired joint venture liquefied natural gas (LNG) terminal at Kitimat, British Columbia, Canada.

 

The Hawaii Shippers Council (HSC) has been showing the several planned LNG export terminal projects at Kitimat as probable sources of LNG for Hawaii.  These proposed terminals would have several transportation advantages including the relatively moderate distance to Hawaii and the Jones Act does not apply to this international trade so a foreign flag LNG carrier (a highly specialized tanker designed for the carriage of LNG) could be used avoiding the problems of sourcing coastwise eligible ships. 

 

In addition to the Kitimat LNG projects, the HSC has been showing other planned West Coast of North America and Alaska LNG export terminal projects as possible sources of LNG for Hawaii including:

·    Alaska Southcentral LNG Project – ExxonMobil, BP, ConocoPhillips & Trans-Canada – development of the North Slope gas fields including Prudhoe Bay and Point Thompson and construction of a Trans-Alaska gas pipeline to the tidewater and LNG export terminal probably at Valdez, Alaska.

·    Jordan Cove LNG Export Terminal Project at Coos Bay, Oregon – would tap into the U.S. gas market through the gas pipeline hub at Malin, Oregon, by means of the proposed Pacific Connector Pipeline. 

 

As we reported on March 6, 2013, ConocoPhillips announced on March 5th that they would be mothballing their Kenai LNG Export Terminal due to declining production from the Cook Inlet gas fields, eliminating one of the LNG sources originally identified by the HSC for Hawaii.

 

The Chevron Kitimat project is known as KM LNG Operating General Partnership with their planned Bish Cove Terminal was originally a joint venture with Apache Corp. holding 40%, Encana Inc. 30% and EDG 30%.  In December 2012, Chevron acquired the Encana and EDG shares and now hold a majority 60%.  Industry analysts advise the HSC that Chevron’s acquisition means that the project now has sufficient resources to move ahead and anticipate a completion date prior to the originally projected 2015.  However, as the Financial Times reported, Chevron is seeking customer contracts first, before going forward.

 

The downside of John Watson’s recent comments for Hawaii’s nascent LNG plans are that Chevron is planning to price their prospective LNG exports from Kitimat on the basis of oil as opposed to lower pricing for domestic U.S. natural gas using the Henry Hub standard.

---30--- 

The Hawaii Shippers Council (HSC) is a business league organization incorporated in 1997 to represent cargo interests – known as “shippers” – who tender goods for shipment with the ocean carriers operating the Hawaii trade.

 

Please contact the HSC at email pacmar@hawaiiantel.net if you wish to be placed on our email list.

 

Financial Times: Chevron explores first Canada gas exports

Seeking Alpha: The Canadian Players in the booming LNG sector

 

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

ALEC

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Ballotpedia Hawaii

Better Hawaii

Blaisdell Memorial Project

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

Coffee Break

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT