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Released October 18, 2022 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The Canadian government said it could help ease the looming energy crisis by pursuing export terminals for liquified natural gas (LNG) so long as they're "economically viable."
Construction is underway for a terminal in Kitimat, British Columbia, that could eventually feed the demand for natural gas in the Asian economy. British Columbia holds one of the largest and most accessible sources of natural gas in the world in its Montney Shale, and liquefaction technology means those resources would no longer be locked in North America. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for related reports.
Speaking in Washington last week during a summit of the International Monetary Fund, Canadian Finance Minister Chrystia Freeland said "we will always be looking at economically viable projects" for LNG.
Pieridae Energy (Calgary, Alberta) has proposed a 10 million ton-per-year LNG facility for Nova Scotia dubbed Goldboro, but said in June 2021 that cost pressures and time constraints forced it to return to the drawing table and review the project. A floating terminal could reduce capital costs substantially, the company said. Subscribers can click here for related reports.
Canadian Prime Minister Justin Trudeau kept the door open to further developments this summer when he hosted delegates from Europe, who are busy looking for natural gas suppliers other than Russia.
Right now, most of Canada's natural gas exports go to the United States, and there are only a few pipelines delivering natural gas to the country's east coast. Even though western infrastructure is a bit denser, the parties behind the Kitimat facility still had to rely on the 415-mile Coastal GasLink pipeline to bring in natural gas.
That would suggest there are roadblocks to building up the infrastructure necessary for LNG on Canada's east coast. Further consideration too would have to be given to the environment. Some provincial lawmakers and First Nations had objected to regional oil and gas projects in British Columbia, saying they posed a significant threat to the environment.
Similar objections nearly thwarted plans by Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) to expand the capacity of its Trans Mountain oil pipeline.
Advocates for the Canadian energy sector in 2020, just as cases of COVID-19 were showing up in North America, said that given the rise in importance of LNG in the global economy, Canada is missing out.
Nearly three years later and costs continue to be an impediment. Kitimat, which is still under construction, was proposed first in 2012 and went through ownership changes since then, suggesting that even if Canada could build up its LNG portfolio, the global energy sector may have evolved beyond the current energy crisis once new infrastructure is completed.
Nevertheless, should Canada's ambitions be realized, it would go a long way toward improving global energy security by offering more options for global gas consumers.
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 200,000 current and future projects worth $17.8 trillion (USD).
Construction is underway for a terminal in Kitimat, British Columbia, that could eventually feed the demand for natural gas in the Asian economy. British Columbia holds one of the largest and most accessible sources of natural gas in the world in its Montney Shale, and liquefaction technology means those resources would no longer be locked in North America. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for related reports.
Speaking in Washington last week during a summit of the International Monetary Fund, Canadian Finance Minister Chrystia Freeland said "we will always be looking at economically viable projects" for LNG.
Pieridae Energy (Calgary, Alberta) has proposed a 10 million ton-per-year LNG facility for Nova Scotia dubbed Goldboro, but said in June 2021 that cost pressures and time constraints forced it to return to the drawing table and review the project. A floating terminal could reduce capital costs substantially, the company said. Subscribers can click here for related reports.
Canadian Prime Minister Justin Trudeau kept the door open to further developments this summer when he hosted delegates from Europe, who are busy looking for natural gas suppliers other than Russia.
Right now, most of Canada's natural gas exports go to the United States, and there are only a few pipelines delivering natural gas to the country's east coast. Even though western infrastructure is a bit denser, the parties behind the Kitimat facility still had to rely on the 415-mile Coastal GasLink pipeline to bring in natural gas.
That would suggest there are roadblocks to building up the infrastructure necessary for LNG on Canada's east coast. Further consideration too would have to be given to the environment. Some provincial lawmakers and First Nations had objected to regional oil and gas projects in British Columbia, saying they posed a significant threat to the environment.
Similar objections nearly thwarted plans by Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) to expand the capacity of its Trans Mountain oil pipeline.
Advocates for the Canadian energy sector in 2020, just as cases of COVID-19 were showing up in North America, said that given the rise in importance of LNG in the global economy, Canada is missing out.
Nearly three years later and costs continue to be an impediment. Kitimat, which is still under construction, was proposed first in 2012 and went through ownership changes since then, suggesting that even if Canada could build up its LNG portfolio, the global energy sector may have evolved beyond the current energy crisis once new infrastructure is completed.
Nevertheless, should Canada's ambitions be realized, it would go a long way toward improving global energy security by offering more options for global gas consumers.
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 200,000 current and future projects worth $17.8 trillion (USD).
