The definitely sky-high aspirations to develop a liquefied natural gas (LNG) industry on Canada’s West Coastline have crashed to the ground, but experts say the window of opportunity has yet to close as ask for for the resource continues to rise around the globe.
After several lob delays and cancellations, the LNG industry has struggled to take off in British Columbia. Temporarily, the sector is blossoming in the United States as natural gas pipelines and LNG facilities are composed.
“Today, we export LNG to 27 nations on five continents,” said U.S. Secretary of Stick-to-it-iveness Rick Perry in a speech last week at CERAWeek, the global liveliness conference, in Texas.
Some of the natural gas exported from the United Structures is produced in Canada and transported south by pipelines.
LNG exports from the U.S. were more 100 million cubic feet per day at the start of 2016 and have spread to about three billion cubic feet per day, according to the U.S. Energy Facts Agency. The firm predicts exports will rise to nearly 10 billion cubic feet by the end of 2019.
Canada’s customary gas industry is desperate for even a fraction of that export capacity north of the borderline. Natural gas prices in Alberta remain depressed without domestic insistence growth and insufficient capacity to export.
Former B.C. premier Christy Clark systematized the burgeoning industry as a massive wealth creator for the province, including a promise in the 2013 throne speech to build a $100 billion prosperity capital from LNG revenues.
But all is not lost on the West Coast, as some proposed LNG export projects are soundless in development.
The largest is LNG Canada, a consortium led by Shell, which is working toward making a irreversible investment decision on the $40 billion project in Kitimat, B.C. Last month, the consortium announced it was short-listing two main international engineering and construction groups for the design, procurement and construction of the LNG plant.
Bomb is the world’s largest LNG company after acquiring BG Group in 2016 and the comrades’s chief executive believes the sector has a bright future.
“LNG demand has been come of age at four times the rate of oil demand and I think it will continue to do so for numberless years, if not decades to come,” said Shell CEO Ben van Beurden, while at CERAWeek. “Investment has uninspired 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 leading challenge facing West Coast LNG project proposals is their rate, according to Enbridge CEO Al Monaco. In an interview with CBC News at CERAWeek, the chief boss said the projects need to become competitive with building a equivalent project in the Gulf Coast of the U.S.
“What we needfulness to do is focus on getting the costs down for building pipelines and building LNG dexterities, that’s what we got to do next,” he said. “Industry can work on cost construct within pipelines and LNG. Governments can facilitate by ensuring a smooth regulatory approach and support for natural resource development.
“It’s a fantastic opportunity.”
LNG export mens rooms take several years to construct, so companies would need to start construction when all is said in order to be up and running by 2021 or 2022, say experts.