There finally seems to be some momentum building for additional LNG export projects on Canada’s West Coast. Major pipeline and midstream operator Enbridge announced in late July that it was making an investment in Woodfibre LNG, a smaller-scale export project that has already come a long way in terms of approvals, pipeline connections, locking up gas supplies, and initial financing. With the Enbridge announcement — and the financial and technical clout the company brings to the table — it is now looking assured that the project will commence construction next year and be exporting LNG by 2027. In today’s blog, we take a detailed look at Woodfibre LNG.
Global LNG markets continue to be roiled by the European energy crisis. The continent looks to be in for what could be a very tough heating season (see Beyond the Sea) as Russia has cut its pipeline gas supplies to a mere trickle and might reduce them to zero in the near future. Gas-use restrictions and other measures are being bandied about daily in Europe as a way to ensure there is enough gas to get through the coming heating season, which is now only weeks away.
Aside from demand-side measures, natural gas and LNG suppliers — other than Russia — are pulling out all the stops in the short term to get enough pipelined gas from other countries such as Norway, or more LNG from various countries to keep European homes warm this winter. Increasing supplies in any form remains a challenge given the extensive lead times and large sums of money to develop new gas and LNG exporting projects. With an additional push by the EU and advice from the International Energy Agency (IEA) to reduce Europe’s reliance on Russian gas by the end of this year and eliminate it by 2030, the continent’s natural gas crisis will not be going away anytime soon, and could last for many years.
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