Following today’s, Tuesday October 2, 2018 announcement of the approval of the Canada LNG project, Will Scargill, Senior Oil & Gas Analyst at GlobalData, a leading data and analytics company, offered his view on the significance of the decision: “The LNG Canada project approval opens new, high value sales markets which are likely to stimulate major investment in Western Canada’s major gas plays, the Montney and the Duvernay. The May 2018 entry into the LNG Canada JV of Petronas, a major player in the Montney, highlights the project’s significance for the upstream segment.

“The price gulf between Asian spot LNG prices of around US$10/Million British Thermal Units (mmBtu) and current realised prices of less than US$2/mmBtu for Canadian producers presents a major value upside to support investment. While significant new LNG capacity is expected to come on stream in the early 2020s, new projects such as this will likely be needed to meet continued demand growth through the second half of the 2020s.

“The initial LNG plant capacity of 14 million tonnes per annum (mtpa) is equivalent to over one third of British Columbia’s current gas production. It also surpasses the amount of gas that the province exports to the US, its only existing foreign export destination. The estimated US$14bn cost makes it the largest upcoming LNG investment project globally to have achieved FID.”

– Oct. 2, 2018 @ 17:35 GMT |