Chevron Corp. (CVX), the second-largest U.S. oil company, may consider expanding its proposed liquefied natural gas export terminal off Canada’s Pacific Coast.
The company has “vast amounts” of gas reserves in the Liard and Horn River formations in Canada’s westernmost province of British Columbia beyond those currently encompassed by its project with Apache Corp. (APA) near Kitimat, Jeff Lehrmann, the president of Chevron’s Canadian unit, said in an interview today in Vancouver.
“Over time we’ll be looking at ways in which we could monetize that resource as well,” Lehrmann said. An expansion of the project from its capacity of 10 million metric tons a year of LNG, approved by Canadian regulators in 2011, “could be one of the possible alternatives, absolutely.”
Chevron, Royal Dutch Shell Plc and BG Group Plc have proposed Canadian LNG export projects to sell gas produced from shale formations in Asian markets, where buyers will pay five times the North American price for the heating- and power-plant fuel. Chevron said Dec. 24 it agreed to buy a 50 percent stake in the project from Encana Corp. and EOG Resources Inc.
Exxon Mobil Corp. is the largest U.S. oil company.