U.S. LNG Investment Outpaces Canada's Top Players

---

Researched by Industrial Info Resources (Sugar Land, Texas)--The major investments and ferocity of implementation for U.S.-based liquefied natural gas (LNG) production and export facilities have made it difficult for Canada-based projects to compete. While the U.S. Gulf Coast region has the most planned LNG facilities, as well as some already under construction, Canada's projects seem to have lost their steam.

Industrial Info is tracking 32 active LNG projects in Canada, with a total investment value of $90 billion. These projects range from large 20 million-tonne-per-year export facilities to smaller, micro-producers of 100,000 gallons per day, which are intended for fleet transportation consumption.

BG Group plc (Reading, England) has hit the brakes on its planned $15 billion LNG facility in Prince Rupert, British Columbia, saying that the large volumes that will be coming from the U.S. might make the project no longer worthwhile. BG was planning to build three LNG production trains, each with a capacity of 7 million tonnes per year. BG has decided to review its plans and hold off on a final decision for at least two years.

View Project Report - 300101612 300121840 300057132 300073863 300013021 300023056

So far, none of the other Canada-based LNG production and export projects have publicized hesitancy to move forward.

A plus for some of the U.S. projects has been in-place tolling agreements for production capacity over the next 20 years. Dominion Resources Incorporated's (NYSE:D) (Richmond, Virginia) Cove Point, Sempra Energy's (NYSE:SRE) (San Diego, California) Cameron, Cheniere Energy Incorporated's (Houston, Texas) Sabine Pass, and Freeport LNG's (Houston, Texas) Quintana facilities all have tolling agreements in place for future production capacity at the sites. This has almost become a trend for the U.S. projects.

Some of the companies investing in Canadian LNG own their own gas reserves, making it easier, more accessible and cheaper for them to move forward with their investment plans for LNG export facilities. A major hurdle for any of the planned British Columbia sites will be pipeline approvals for feedstock supplies to their facilities. It has been an uphill climb for several planned natural gas-related facilities to gain approval to run pipelines across British Columbia.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.