Tuesday, March 6, 2018

Woodside bows out of LNG Terminal development plans for Grassy Point

The Grassy Point proposal
for LNG development by
Australia's Woodside is
officially dead
For Prince Rupert, it's Farewell to Woodside Energy, we really, really never did get to know you!

Not that they were seemingly doing a lot of investigative work on the file, but Australia's Woodside Petroleum has made things official today, cancelling any plans for further development work for a proposed LNG terminal at Grassy Point, near Lax Kw'alaams.

Word of the pending departure from the Prince Rupert area comes through this story from the Globe and Mail, with Brent Jang once again providing for the first alert when it comes to LNG developments for the region.

The sole proponent agreement for the site had expired on January 15th of this year, and as the Globe reports today, in their statement from Australia on Tuesday, Woodside advised that they had decided not to renew it.

The Australian energy giant hadn't really had much to say about that potential development for a few years now, having instead put its focus on a Kitimat location and the potential development of the Kitimat LNG terminal project.

As we noted earlier today, that project jumped back onto the radar yesterday with word that Petronas is potentially looking to become a partner in the terminal development, as they look to get their Northeastern gas reserves to global markets.

Petronas is reportedly looking to take over the share currently held by Chevron, which would make the Malaysian energy company a partner with the Australian one, an axis of southeast Asian energy power it would seem.

Woodside Energy has decided not to renew their agreement
for development of an LNG terminal at Grassy Point near Lax Kw'alaams

Woodside had first planted a flag at Grassy Point in  January of 2014.

The last real note of interest related to their interest in the Prince Rupert area came back in March of 2016, when the 30 day Comment period on Grassy Bay opened.

The company had previously held an Open House in February of 2016 making for their public introduction to the region.

While they were exploring their interests in the Grassy Point site, the Australians were also making some moves in Kitimat,  having picked up the interests of Apache Corporation in the Kitimat terminal project back in 2015.

With word of the Grassy Point cancellation and the renewed interest in the Kitimat proposal, the shift in focus for the LNG industry in the region is clearly moving into the Douglas Channel area and the twin proposals located near the Aluminum City.

You can keep up with whatever comes of the Kitimat LNG project through our archive page here.

The short lived review of the Woodside plans for the North Coast can be examined from our archive page here.

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