Apache Backs Out of Kitimat LNG Project

The Globe and Mail reported that Apache Corp. (NYSE:APA) is backing out of the Kitimat LNG project, meaning that co-owner Chevron Corp. (NYSE:CVX) will have to find a new partner. Apache’s decision came on the back of pressure from activist investor Jana Partners LLC.

As quoted in the market news:

Kitimat LNG, one of the ‘Big Three’ projects envisaged for British Columbia, has been put on shaky ground as a result of Apache’s pullout. It’s also a setback for the dreams of B.C. Premier Christy Clark’s government for a resource boom that is supposed to propel the province to new economic heights. Canada already lags Australia in entering the LNG game, and fledgling U.S. projects also pose a threat to B.C.’s lofty ambitions to have the province’s natural gas sector grow in financial importance and be mentioned in the same breath as Alberta’s oil sands.

Steven Farris, CEO of Apache, commented:

There are no sacred cows in our efforts to continue. Apache’s future will be centred on our tremendous North American onshore resource base. Apache, which has already jettisoned $10-billion in assets over the past 18 months, is also pondering ways to spin off or outright sell various international properties as part of its sweeping evaluation.

Click here to read the full report from The Globe and Mail.