Why developers should invest in Canadian LNG

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Matthew Hamer, Strategic Development, Solaris Management Consultants
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As Canada’s LNG industry is exposed to more and more market developments, Canada’s resource potential is starting to be recognised. And with some of the best regulatory processes in the world when it comes to safeguarding the environment, key gas players are really pushing to build and develop infrastructure to open up the global markets.

Ahead of Canada Gas & LNG Exhibition and Conference taking place 21-23 May in Vancouver, Gastech Insights spoke with Governing Body Member and Strategic Development at Solaris Management Consultants, Matthew Hamer, to hear more about the current market dynamics.

Gastech Insights: What is the biggest change that we saw in the Canadian LNG industry since the conference last year?

Matthew Hamer: At the close of the 2018 conference, we were all feeling fairly bullish that the tide was turning in terms of Canadian LNG projects moving to FID. And of course, that is what transpired – LNG Canada took FID and we entered 2019 with one LNG terminal now underway, and one more advancing to FID.

Gastech Insights: Why do you think getting Canadian natural gas to Asia is important?

Matthew Hamer: There are several considerations here. The first is that we have huge gas reserves and only a single customer for them – the USA – and of course, the energy dynamic with respect to USA markets has dramatically changed with the US now an LNG exporter. The second is that clean Canadian LNG will offset coal power generation in Asia, which will significantly reduce air pollution and greenhouse gas emissions globally. Last, exporting our natural gas to Asia is going to create opportunities for First Nations to be top table partners in these ventures.

Gastech Insights: What would you say to a potential LNG developer about investing in Canadian LNG?

Matthew Hamer: While it is true that our regulatory process may be viewed as challenging relative to some other regulatory regimes, at the end of the day, Canada is a country where the rule of law matters and business in Canada is conducted to the highest ethical standards. And from a pure economics point of view, we have world-class gas reserves and well-developed infrastructure to facilitate the development of an LNG export industry. For the most part, the Canadian LNG industry is well supported by our indigenous people, who want to realise the economic and developmental benefits of these projects.

Gastech Insights: LNG Canada has taken Final Investment Decision, and according to their media releases, the Pacific Oil and Gas is advancing to a potential 2019 FID. Do you see more projects advancing?

Matthew Hamer: At one point, we had over 20 potential LNG projects in Canada. Some have been suspended or discontinued, but no one expected all of them to advance to FID. There was always a belief in the industry that we would see some consolidation, and that some of the opportunities that were being considered would fall away. This is true of any player in any hydrocarbon basin around the globe. We do believe additional projects will proceed to FID over time, including projects on both the West and East Coast of Canada. The gas is there to support the demand and we need to have new markets for our oil and gas.

Gastech Insights: What role will Solaris play in Canadian LNG developments?

Matthew Hamer: We are the only BC based EPCM firm focused solely on oil and gas. We arguably have more experience on upstream shale gas development than any other EPCM firm. We completed two full field development studies related to Canadian West Coast LNG in the last few years, and we believe we can apply our learnings from this to other LNG related upstream field development projects. We have a deep working knowledge of the regulatory framework as it applies to facilities design. And we have our relationship – the Haisol Joint Venture – with HN Projects Limited Partnership, an affiliate of the Haisla Nation, which we can utilise to create opportunities for First Nations in the Douglas Channel area.

Gastech Insights: Why should industry players attend Canada Gas and LNG Exhibition and Conference (CGLNG) this year?

Matthew Hamer: This conference has been a mainstay for the emerging Canadian LNG industry for several years. In 2018, we saw key leaders from LNG developers, First Nations and government participating in the conference, as speakers, or as part of informative and interesting panel discussions. The conference is an excellent forum to gain insight into Canadian LNG and to meet influential leaders in the industry. By attending, you can create those valuable relationships that will enable meaningful participation in this emerging Canadian industry.

Bringing the full value chain together as well as adapting to recent market expansions, CGLNG is the only event of its kind. Register your delegate place today to not miss out!