Shipping large volumes of LNG from Canada’s West Coast across the Pacific Ocean to gas-hungry markets in Asia has been a dream nearly two decades in the making. After a great deal of work and patience, three projects have moved into the construction phase, with the most advanced — LNG Canada — on the cusp of accepting its first test-gas volumes, with exports possible by the end of the year. Even with all this progress, three additional projects are vying for the opportunity to join Canada’s LNG export party, as we discuss in today’s RBN blog.
We hope you’ve donned your dance shoes because the LNG export party on the coastline of Canada’s westernmost province of British Columbia (BC) is just getting underway. It’s been a long time coming. Back in 2012, more than 20 projects were on the drawing board, totaling more than 40 Bcf/d of prospective exports, most of them planning to tap the vast resources of the Montney formation (light-gray-shaded area near the center of Figure 1), a massive unconventional gas resource spanning the provinces of BC and Alberta. With the goal to ship LNG to the quickly expanding markets of Asia — with a direct, cross-Pacific corridor that would avoid any Panama Canal snafus (i.e., fewer days at sea and less money spent) — LNG exports from BC seemed like a no-brainer.
However, after years of regulatory delays, investor disinterest and environmental opposition, just three projects have reached the coveted finish line of a final investment decision (FID) — a hard decision to fully invest and proceed to construction, completion and eventual startup.
Figure 1. Canada’s West Coast LNG Projects. Source: RBN
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