(Adds details about possible stake sale, project)
By John Tilak, Ernest Scheyder and David French
Among the parties in talks with Chevron for a possible stakein Kitimat LNG are Petroliam Nasional Bhd, orPetronas, which scrapped its own
Reuters spoke over the past week to the sources, who saidthere is no certainty that Chevron would proceed with the stakesale. The persons spoke on condition of anonymity because theprocess is private.
Chevron declined to comment, and Petronas did not respond toa request for comment.
Chevron is also considering selling a stake in the projectto a financial investor such as a Canadian pension fund or aprivate equity firm, the people added.
Canadian companies Seven Generations Energy Ltd andTourmaline Oil Corp are in discussions to supplynatural gas to Chevron's project, the people said. SevenGenerations may also consider buying a stake in the project bypartnering with other gas producers, the people said.
While any possible deal with a financial investor would bestrictly a cash infusion to help support the cost of buildingthe project, a deal with a producer could be structured as acommitment to supply natural gas to the plant for a period of 20to 25 years, the people said.
Canadian pension funds have a huge appetite forinfrastructure-style assets that offer stable cash flows over along period, and pipeline investments tend to have thoseattributes.
The project in
Taking such a substantial investment decision has beendifficult for the duo, given concerns over a global LNG supplyglut for the last three years. Fierce political opposition in
However, surging gas demand from
Seven Generations declined to comment, and Tourmaline didnot respond to a request for comment.
Located about 1,400 kilometers north of