Hope endures for liquefied natural gas industry on West Coast as world demand continues

0

The straight away sky-high aspirations to develop a liquefied natural gas (LNG) industry on Canada’s West Shore have crashed to the ground, but experts say the window of opportunity has yet to close as require for the resource continues to rise around the globe.

After several predict delays and cancellations, the LNG industry has struggled to take off in British Columbia. In the meanwhile, the sector is blossoming in the United States as natural gas pipelines and LNG facilities are devised.

“Today, we export LNG to 27 nations on five continents,” said U.S. Secretary of Power Rick Perry in a speech last week at CERAWeek, the global zip conference, in Texas.

Some of the natural gas exported from the United Glories is produced in Canada and transported south by pipelines. 

Royal Dutch Externals chief executive Ben van Beurden talks LNG prospects at CERAWeek0:30

LNG exports from the U.S. were around 100 million cubic feet per day at the start of 2016 and have flourished to about three billion cubic feet per day, according to the U.S. Energy Communication Agency. The firm predicts exports will rise to nearly 10 billion cubic feet by the end of 2019.

Canada’s unembellished gas industry is desperate for even a fraction of that export capacity north of the abut on. Natural gas prices in Alberta remain depressed without domestic requirement growth and insufficient capacity to export.

Former B.C. premier Christy Clark coordinated the burgeoning industry as a massive wealth creator for the province, including a deposit in the 2013 throne speech to build a $100 billion prosperity ready from LNG revenues.

But all is not lost on the West Coast, as some proposed LNG export engagements are still in development.

The largest is LNG Canada, a consortium led by Shell, which is come to c clear up toward making a final investment decision on the $40 billion chuck in Kitimat, B.C. Last month, the consortium announced it was short-listing two major universal engineering and construction groups for the design, procurement and construction of the LNG plant. 

LNG plants proposed January 2018

Ante up is the world’s largest LNG company after acquiring BG Group in 2016 and the establishment’s chief executive believes the sector has a bright future.

“LNG demand has been bear at four times the rate of oil demand and I think it will continue to do so for numerous years, if not decades to come,” said Shell CEO Ben van Beurden, while at CERAWeek. “Investment has drearied up a bit. I think this is probably not a bad time to start considering again investment in cater to of new LNG projects and I suppose if we don’t do that, we’ll see a bit of a crunch coming in the early [2020s].”

The utter challenge facing West Coast LNG project proposals is their set someone back, according to Enbridge CEO Al Monaco. In an interview with CBC News at CERAWeek, the chief CEO said the projects need to become competitive with building a equivalent project in the Gulf Coast of the U.S.

Enbridge Al Monaco

Enbridge CEO Al Monaco says costs accept to come down for LNG projects to become a reality. (Kyle Bakx/CBC)

“What we destitution to do is focus on getting the costs down for building pipelines and building LNG johns, that’s what we got to do next,” he said. “Industry can work on cost make-up within pipelines and LNG. Governments can facilitate by ensuring a smooth regulatory organize and support for natural resource development.

“It’s a fantastic opportunity.”

LNG export facilities annihilate several years to construct, so companies would need to start construction in two shakes of a lambs tail in order to be up and running by 2021 or 2022, say experts.

Leave a Reply

Your email address will not be published. Required fields are marked *