Canada Will Be A Big LNG Player

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Canada Will Be A Big LNG Player

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abarrelfull wrote on 13 Apr 2012 14:31
Tags: canada lng

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The Canadian industry took some time to adjust to the reality that their biggest natural gas customer no longer needed their product, but it seems that the point has truly sunk in and alternative plans are accelerating.

First up, Kitimat Lng Terminal, like so many of its US peers, changed from being an import to an export project. It received export permission last year, and is set to start exporting LNG from 2014.

Now it is being joined by the Douglas Channel Lng Terminal Project which has just been awarded an export licence

The Honourable Joe Oliver, Minister of Natural Resources, today announced that the Government of Canada has approved the issuance of a 20-year licence to BC LNG Export Co-operative to export liquefied natural gas from Kitimat, British Columbia.

Douglas Channel is a relatively small player. Shell on the other hand has much bigger plans. They want to export 12 million tons per year, and are in final talks with their partners. They plan to be in operation in 2020.

Unlike most of their US competitors, these terminals will be located on the Pacific coast, much closer to the world's most important Asian markets. They may face local environmental hurdles, but the idea of stopping them exporting gas is not really an issue north of the border.

Whilst all eyes are on the gulf coast, its just possible that Canada may have a bigger impact on global LNG markets than her southern neighbour.