Goldboro

Despite the challenges they would likely face, as many as four companies are exploring the possibility of exporting liquefied natural gas (LNG) from the Canadian Maritimes [1] to Europe, Latin America and Asia. Their thinking is, with Marcellus natural gas production expected to continue increasing, with Sable Island and Deep Panuke gas just offshore, and Europe little more than a week’s boat ride away, LNG exports from Nova Scotia and New Brunswick may well make economic sense. But LNG export terminals are among the most capital-intensive projects; also, piping Marcellus gas through New England—a region with serious wintertime gas-delivery constraints—to the Maritimes would require major pipeline upgrades. Today we look into the LNG project plans and the pipeline expansion needs in more detail.

With Marcellus natural gas production expected to continue increasing, several companies are proposing projects to pipe a portion of the output through New England to Canada’s Maritime Provinces, where the gas would be liquefied and exported to Europe, Latin America and maybe even Asia. Some offshore Atlantic Basin gas production from Sable Island and Deep Panuke would be mixed in too. Such plans for as many as four new LNG export facilities in Nova Scotia and New Brunswick hinge on the development of new pipeline capacity through New England to the existing Maritimes & Northeast Pipeline (MNP), which would be reversed to flow north. Is this a golden opportunity or an overreach?  Today we examine prospects for exporting Marcellus gas through new Eastern Canadian LNG facilities.