Many hurdles remain before U.S. oil giant Chevron Corp. can decide the fate of its planned liquefied natural gas project in Kitimat, B.C., and finding a new partner is just one of them, CEO John Watson said Friday.

"It's not a schedule-driven project. It's an economics-driven project," Watson told reporters ahead of the annual Spruce Meadows Changing Fortunes Round Table in Calgary.

This summer, Chevron's partner in the project, Texas-based Apache Corp., announced it was getting out of the liquefied natural gas game, putting the future of the Kitimat LNG project in question.

Chevron, headquartered in California, has said it has no interest in increasing its 50 per cent share of the project. That leaves it up to Apache to sell its half-stake in accordance with an agreement it signed with Chevron, said Watson.

But even without the uncertainty over the partnership structure, a number of items need to be crossed off the list before a final investment decision can be made.

Chevron needs sales contracts with customers, clarity concerning British Columbia's fiscal regime, more knowledge of its resource potential in northeastern B.C. and support from First Nations.

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