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Slip Sliding Away—Western Canadian LNG Export Projects Face Winnowing

Heightened worldwide competition among LNG exporters is forcing a reality check on projects. LNG buyers, most of them in the Asia/Pacific region, are pressing for prices that more closely track natural gas value at the source—plus the known or calculable costs of liquefaction and shipping. Projects whose capital costs put their LNG pricing out of the money will not find the buyers they need to make their projects a “go.” The 16 or more LNG export projects under development in Western Canada are going through a winnowing process of sorts right now, largely because all are greenfield efforts and all but the smallest projects require new, expensive pipeline capacity to move their gas to port.  Today in the third blog in our series on Western Canadian LNG exports, we examine the remaining field of contenders, including some floating or barge-based proposals that may gain an edge.

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