• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 3 hours Is Eating Meat Worse Than Burning Oil?
  • 11 mins Diplomatic immunity
  • 4 mins China & Coal: China's 2019 coal imports set to rise more than 10%: analysts
  • 7 hours Canada Election Deadlock?
  • 34 mins ‘If it saves a life’: Power cut to 1.5 million Californians
  • 8 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 22 hours Devaluing the Yuan
  • 12 hours Russia Predicts The Death Of U.S. Shale
  • 16 hours Nigeria Demands $62B from Oil Majors
  • 7 hours AOC vs Wells Fargo CEO on Dakota Access
  • 1 day Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
  • 12 hours IMO 2020:
  • 16 hours The Ultimate Heresy: Technology Can't Fix What's Broken
Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

A $35 Billion Middle of Nowhere

Few investors have heard of Kitimat, Canada. But this town of just over 8,000 people looks to be at the epicentre of a multi-billion dollar boom.

The reason is LNG. A topic that's becoming big news in western Canada.

Especially after last week. When the government of Malaysia announced it plans to spend $35 billion constructing a gas liquefaction terminal and associated infrastructure on the Canadian coast near Kitimat.

Malaysian state firm Petronas will almost certainly feed the LNG development with gas from the British Columbia properties it acquired by buying Progress Energy Resources last year. A theme now becoming common--shale gas in BC looks to be for real. And a number of companies are eying this high-potential area as feedstock for Pacific LNG shipments.

In fact, there are at least five LNG projects in various stages of planning and permitting within western Canada right now. Estimates put each one at a price tag in the tens of billions. There is speculation that numbers could run into the hundreds of billions.

That's an astonishing amount of money ready to be poured into the northwestern Canadian wilderness. If these investments go ahead (and announcements like the recent news from Petronas make it appear they will), the demand for construction equipment, labor and pipeline services is going to be astronomical.

Much of this spending needs to take place years before an LNG terminal ships its first gas. Meaning that money could start landing on the ground as early as the coming year.

Believe what you want about the wisdom of LNG in Canada. But the fact is, big spenders are backing the play. And that could mean a boom for the services sector in this out-of-the-way part of the world.

Here's to blazing a trail,

By. Dave Forest




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play