• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 4 hours OPEC will consider all options. What options do they have ?
  • 4 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 48 mins Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 7 hours What to tell my students
  • 5 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 4 hours A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 11 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 5 hours China Threatens to Withhold Rare Earth Metals
  • 7 hours With Global Warming Greenland is Prime Real Estate
  • 20 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 19 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents, building nukes * Too late now
  • 16 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 21 hours Flaring is at Record Highs in Texas
A Limited Risk Play In A Shaken Market

A Limited Risk Play In A Shaken Market

Recession fears tanked stock markets…

Canada One Step Closer To Major LNG Exports

Canada is getting closer to opening its first liquid natural gas (LNG) export terminal now that TransCanada Corp. has received conditional approval to build a pipeline to supply the facility.

If given final approval, the 560-mile conduit, called the Prince Rupert Gas Transmission line, would connect the rich Montney gas field in northeastern British Columbia with the Pacific Coast. From there the gas will be exported.

Related: Oil Demand Weaker Than Many Expect

“This development is a significant step forward,” TransCanada CEO Russ Girling said in a statement on June 12. “The conditional positive final investment decision advances a key component of TransCanada’s C$46 billion capital growth plan.”

Girling has a right to be pleased, even relieved. The tentative approval for the pipeline represents rare good news for TransCanada, which in the past few years has had seemingly insurmountable trouble winning approval for crude oil pipeline projects, in particular the proposed Keystone XL conduit that would bring Canadian oil sands from Alberta to the U.S. coast of the Gulf of Mexico.

Oil aside though, TransCanada, based in Calgary, has invested generously in LNG, and has deals to build gas pipelines costing a total of more than C$13 billion to several export terminals on Canada’s Pacific coast. The Prince Rupert pipeline would add C$5 billion (US$4.06 billion) to that investment.

Related: Crunch Time For The US Coal Industry

The tentative approval for the pipeline came from a joint venture that owns the Pacific NorthWest LNG terminal. The consortium is run by Petroliam Nasional Bhd, or Petronas, the state-owned Malaysian oil company. Petronas said the initiative still must satisfy several environmental and regulatory guidelines, as well as meet the concerns of First Nations residents of the area, who opposed building the pipeline.

Canada’s National Energy Board in Ottawa also has given its blessing to TransCanada’s pipeline proposal. It recommended in April that the Ottawa government give its final approval, calling the project a “critical component” linking Canada’s expanding gas sector and existing and emerging markets.

Also in the works is a second pipeline associated with the Petronas LNG terminal project, the C$1.7 billion North Montney Mainline, which would be a tributary of the Prince Rupert pipeline. This project was approved by the Canadian government on June 11. As for the Prince Rupert conduit, Girling said TransCanada is ready to begin building it soon and bring it online as early as 2019.

Related: Don’t Believe The Hype On U.S. Shale Growth

Rich Coleman, British Columbia’s deputy premier, who is in charge of natural gas development, said he believes the provincial government has played a key role in strengthening Canada’s LNG industry and putting it on the path to becoming the country’s largest source of private investment.

The National Energy Board says the country’s conventional gas exports have declined in favor of growing U.S. production of shale gas. Coleman said his office intends to reverse that trend, and to do so responsibly. “The province of British Columbia will continue to work with all partners to ensure the project is developed with the highest standards of environmental protection and enhancement.”

By Andy Tully of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | 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