B.C. LNG not dead yet

With the winnowing of the once 20-plus proposals to develop export terminals for liquefied natural gas (LNG) on the B.C. coast—in particular this year’s cancellation of the giant Petronas and CNOOC Nexen projects—combined with the arrival of a provincial government at best ambivalent towards LNG, it would be easy to assume the dream of a job- and revenue-spinning new industry on the north coast is dead. But it’s not. The market for LNG, mostly in the Far East and Europe, is sucking up the surplus created by new megaprojects in Australia and elsewhere faster than previously thought, with global demand increasing 12 per cent year over year.

“I’ve always said ‘no way’ to greenfield B.C. LNG, and I’ve changed my mind,” Stream Asset Financial Management principal and long-time natural gas analyst Dan Tsubuchi told the Financial Post, adding that he’s gone from bearish to bullish on prospects for a West Coast LNG project. All eyes are on two projects located in Kitimat, the Chevron-led Kitimat LNG and Shell-sponsored LNG Canada. A final investment decision on the latter project is expected next year.