Canadian Gas Exports Rise as LNG Sector Builds Up

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Written by Daniel Graeber for IIR Energy Intelligence (Sugar Land, Texas)

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Summary

A brush of cold winter weather for North America saw the U.S. market taking in more natural gas from Canada. Canada, meanwhile, is building up its LNG export potential on the western coast.

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Thermometer Down, Imports Up

While pursuing an agenda that would halve the amount of U.S. trade, data from IIR Energy show a rise in U.S. imports of Canadian gas as winter returns to North America.

A spate of milder weather at the start of March saw consumer demand for heating fuels slump. Colder weather, strong thunderstorms and a handful of early-season tornados swept across the southern Plains and into the Midwest earlier this week, however, prompting consumers to turn up the thermostat.

On Friday, IIR Energy in its NATGAS Today report found U.S. demand for natural gas was 10 billion cubic feet per day (Bcf) higher than week-ago levels. Canada, meanwhile, is a net natural gas exporter to the U.S. economy and levels increased from 3.11 Bcf on Monday to 4.28 Bcf on Friday.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more about Canadian natural gas networks--including capacities, investment values and necessary equipment--from this comprehensive list.

Canada ranks fifth in the world in terms of natural gas reserves and sixth in terms of exports. With U.S. President Donald Trump at times hinting at Canadian annexation during his routine volleys of trade barbs, the Canadian government is working to halve the amount of U.S. trade by the next decade.

Canada Ramping Up LNG

A net exporter of natural gas, Canada is also leading the race to tap Asian economies hungry for natural gas through exports of liquefied natural gas (LNG) from its western shores. Delivering its debut cargo last year, LNG Canada is the only facility that can deliver the super-cooled gas from the Pacific Coast of North America.

LNG Canada in a series of community notices said it would be flaring off natural gas for about a week, with visible emissions apparent from the facility.

"Flaring is a provincially regulated safety measure that ensures the controlled, efficient combustion of natural gas during specific operational phases," LNG Canada said in a statement. "It is a critical part of safely operating a facility of this scale and is not expected to be routine during regular operation."

LNG Canada, backed primarily by Shell plc, features two trains, or liquefaction units, that can combine for 14 million metric tons per annum (MTPA) of gas in the liquid form. All of its exports so far have gone to Asian economies.

Subscribers can view the plant profile.

Elsewhere, the operators of the Woodfibre LNG facility in British Columbia on Tuesday marked the arrival of the fifteenth liquefaction module for the facility. Nineteen are scheduled for a plant that could see construction completed as early as 2027.

Rather than firing its turbines with natural gas, Woodfibre will use electricity, leaving it with a lower environmental footprint relative to its peers.

"As the world's first LNG export facility using renewable power for electric-drive liquefaction, this module represents the core of our commitment to net-zero operations and setting a new standard for LNG, both in Canada and around the world," Chief Executive Officer Luke Schauerte said in a statement.

Woodfibre is a joint venture between Pacific Energy and Enbridge. It has a design capacity of 2.1 MTPA.

Subscribers have access to the project report and related plant profile.

By the Numbers

• 14 MTPA from LNG Canada
• 2027 could see the start of new LNG export capacity in Canada

Key Takeaways

• A blast of cold air saw demand for heating fuels rise.
• Canada is picking up the pace in west-coast LNG.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).