Canada hopes LNG exports can re-energize gas production
The glut of Lower 48 shale-gas production not only has sidetracked plans to pipe the rich trove of Alaska North Slope natural gas to U.S. consumers, it means less Canada gas is sent to U.S. markets. That has stranded trillions of cubic feet of gas in relatively new-found shale plays of northern British Columbia.
Increasingly, Canadian government officials and producers believe the answer is to export Canada’s shale gas as LNG to Asia, where demand is growing and prices today are high.
Four liquefied natural gas export projects are under active consideration for Canada’s West Coast, although none has progressed as far as a decision to build. Players include gas producers, pipeline companies and Asian investors.
Backers of these projects have discussed exporting as much as 5.8 billion cubic feet a day of LNG within a decade. That volume would vault Western Canada into the top echelon of global LNG makers, if all of those projects get built.
Posted: September 11, 2012