As countries around the world look to meet the energy needs of their growing economies and populations, the increasingly preferred option, thanks to its combined benefits of reduced costs and reduced emissions is liquefied natural gas. That puts Canada, and LNG projects in British Columbia in particular, in an enviable position, thanks to a combination of strong fundamentals that few jurisdictions can match. For LNG customers in China, India, Japan and other Asian countries, British Columbia offers numerous advantages, including:
1. Easy shipping access: BC’s Pacific coast projects are on the doorstep of Asian markets, with shorter shipping distances and no Panama Canal risks or costs.
2. Lowest cost gas in the world: Canada’s dollar is running at a 20% discount to the US dollar, which makes our current Canadian Gas Price of $2.15/mmbtu the equivalent of USD $1.72/mmbtu.
3. Cooler conditions: LNG facility operating conditions in BC are hurricane-free and cooler than the US Gulf Coast, offering increased efficiency of around 10% and some of the lowest GHG emissions LNG in the world.
4. Abundant supply: Canada’s natural gas reserves, estimated at 1,000 TCF, can supply the country’s domestic and export needs for at least the next 100 years.
5. Governmental support: At the Federal, Provincial and First Nations level, support for BC’s growing LNG sector is strong with tax, education and skills training initiatives in place to spur investment and project success. Steelhead engages First Nations early to ensure support for the project.
6. Safety and stability: Canada is renowned the world over as one of the safest and most politically stable countries in the world, with a culturally diverse population that make it one of the world’s best places to live and work.
International observers may see First Nations as a challenge for Canadian LNG companies but we have found them to be excellent partners that are definitely open for business provided projects align with their goals and principles.
While new pipelines will be required to deliver natural gas from northeastern BC to facilities on the Pacific coast, with so many key fundamentals in place, the key question is not if BC’s LNG sector will rise to become a leading player on the world stage, but just how quickly will that happen. - Article end -
Do you agree with Mr Kuzemko on British Columbia's competitive advantage when supplying LNG to Asian countries? How long do you think Asia will have to wait for Canada's LNG? Let us know your thoughts below.
To meet Nigel Kuzemko and discuss the key challenges to export Canadian LNG, attend the Canada LNG Export Conference and Exhibition this May in Calgary, Canada. Follow the banner below to find out how you can get involved.
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