After a decade of failed attempts due to rising prices and indigenous opposition, Canada is trying again to create a liquefied natural gas (LNG) export business on its west coast. To save money and time, businesses are focused on West Coast initiatives on a smaller scale.
Enbridge CEO Al Monaco recently told Reuters that smaller projects are simpler to oversee because of Canada’s relatively small size. “Now more than ever before, the world needs access to LNG; I just pray we don’t squander this opportunity. We need to jump directly into action.”
New LNG facilities on Canada’s Atlantic coast have been deterred by environmental and regulatory impediments to pipeline construction. The Pacific coast of British Columbia is conveniently located near both the massive Montney shale field in Canada and the Asian markets where LNG prices reached an all-time high last week.
In addition to the feasibility study for Phase 2 of the LNG Canada project being conducted by a consortium led by Shell, Enbridge last month proposed a C$1.5 billion investment in Pacific Energy Corp’s Woodfibre LNG project.
The Woodfibre project is scheduled to begin building in 2023, and the 14 mtpa LNG Canada project in Kitimat is now under construction and is anticipated to enter service in 2025. Only only two out of the original 18 proposals have begun.
In British Columbia, the cost of constructing a big LNG terminal is nearly double that of the US Gulf Coast, and the current trend is toward the construction of much smaller plants, with LNG Canada being the sole exception.
