Chevron Corp is slowing spending on the Kitimat liquefied natural gas project on Canada’s Pacific Coast amid a crash in oil prices and competition from new projects worldwide.
The San Ramon, California-based producer is also delaying all final investment decisions except for its Tengiz field in Kazakhstan, Chief Executive Officer John Watson said on a conference call on Friday. He did not elaborate on the slowing of investment in Canada.
Crude has dropped more than 50% since June highs, prompting major oil producers and service providers to cut jobs and capital spending.
Watson said in September that Chevron needed to secure contracts and assess engineering costs before making a decision on the Kitimat project.
Woodside Petroleum Ltd. in December agreed to pay Apache Corp. $2.75 billion for stakes in the Kitimat project and another LNG venture in Australia.