Houston-based Apache Corporation will exit from its holdings in the Kitimat LNG project in Bish Cove, British Columbia and the Wheatstone LNG project in western Australia.
The move is meant to refocus Apache’s efforts on its US onshore projects, the company said Friday.
“Record-setting performance by our Permian region continues to drive strong results for the company. Apache’s onshore North American liquids production increased 18 percent on a pro forma basis in the second-quarter 2014 compared with the same period a year ago,” Apache Chairman, CEO and President G. Steven Farris said.
The company said its evaluating its other international assets and is exploring multiple options including selling off some or all of these assets.
The Kitimat project is a joint-venture between Apache and Chevron started in 2012.
Both companies have a 50 percent stake in the project.
Chevron signed on as the operator of the facility and a connecting pipeline, Apache would have provided gas from its shale holdings in northeastern British Columbia.
The facility will include two liquefaction trains to cool the natural gas to a liquid state, LNG storage tanks and a marine jetty and berth to accommodate specialized LNG carriers.
Kitimat LNG has a National Energy Board license to export up to 10 million tonnes of LNG per year.
Kitimat is currently in the the front end engineering and design phase.
Apache and Chevron have had a hard time securing buyers, Ed Kallio, director of gas consulting at Ziff Energy told the Vancouver Sun.
Apache was also part of the consortium with Chevron Australia on the Wheatstone LNG project.
The Wheatstone Project will include an onshore facility in Western Australia’s Pilbara region.
The foundation project includes two LNG trains with a combined capacity of 8.9 million tonnes per annum (MTPA) and a domestic gas plant.
Apache holds a 13 percent stake in Wheatstone.
Chevron has not commented on Apache’s exits from the two projects.