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LNG projects on both East and West Coasts seek new markets for Alberta’s natural gas sector – Maureen McCall


by Maureen McCall – EnergyNow Contributor

With the change of leadership in Alberta, Jason Kenney’s pledge to revitalize Alberta’s natural gas industry has renewed interest in LNG on both Coasts.

His promise to implement a robust natural gas strategy is having an effect.

Just a day after the Alberta election, while mainstream media focused on negative sentiments concerning oil pipelines, Quebec premier François Legault openly stated he supported natural gas pipelines, specifically a project to carry natural gas from Alberta to Quebec’s Saguenay region, where it would be liquefied and transported to European markets by LNG tanker ships. Legault has stated it would create “thousands of well-paid jobs.”

Kenney for his part has stated his party would streamline regulations that hinder the energy industry and work with stakeholders “to get a fair price” for Alberta natural gas, including support for LNG infrastructure. Kenney added he’d facilitate Indigenous financial participation in resource projects and infrastructure, including pipelines.

“We need to do something dramatically different to end the stalemate that has left Alberta energy landlocked and has led to a jobs crisis in our province,” Kenney said at the Enoch Cree Nation near Edmonton earlier this month.

So, what does this mean for the Canadian Natural Gas industry?

In the longer term, the biggest benefit to the industry is that the change in provincial premiers’ attitudes may pave the way for other LNG projects – specifically on the East Coast of Canada, in addition to bolstering support for West Coast projects.

“It’s still very early days, but what it shows is a public renewal of interest in Canadian LNG,” said Ian Archer, associate director of North American natural gas for IHS Markit in Calgary.

This comes at a vital time for the Canadian natural gas sector. Production has increased in recent years, but the industry has lost market share in the United States. A report by IHS Markit forecasts global demand for LNG will grow by almost four per cent annually until 2040, providing an opportunity for Canada to expand into international markets.

But with fourteen proposed Canadian LNG projects, which ones are the most likely to succeed?

Haywood Capital Markets has issued a new research piece and says Pieridae Energy ‘s proposed LNG export facility has the highest likelihood of moving ahead -One of four Canadian LNG Projects out of the fourteen expected to proceed.

Pieridae’s Goldboro LNG, Shell’s LNG Canada, Kitimat LNG (Chevron and Woodside Petroleum) and Woodfibre LNG are the four expected to break away from the pack. Haywood points out Goldboro’s per unit costs of ~US$750/tonne compares well with the other LNG facilities. Pieridae’s project benefits from owning conventional Alberta natural gas, as well as having a significant cost advantage as the project would use 100% existing pipelines from Western Canada transporting gas literally to Goldboro’s front door.

Unlike many North American energy projects, Goldboro is fully permitted, with all regulatory, environmental, Canadian and US import/export and construction permits in place. In addition, they’ve included First Nations in their plan for economic development and have signed a benefits agreement with the Assembly of Nova Scotia Mi’kmaq Chiefs ensuring the Mi’kmaq First Nation will benefit economically from the development, construction and operation of the Goldboro LNG project. Since there has been a re-gas terminal operating in New Brunswick since 2005, Pieridae’s Goldboro project has not encountered the same opposition as projects on the West Coast.

LUNCHEON & PRESENTATION

For more on Pieridae Energy and the Goldboro LNG project, join us for a presentation by Martin Bélanger — President, Operations & Engineering at Pieridae Energy on how “Pieridae Energy is Poised to Be the First LNG Company to Market in Canada” Thursday May 16th 11:30- 1pm at The Calgary Petroleum Club.

For tickets- go to https://securegs.com/registerEvents.php?eID=6016

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