Posted - May 29, 2013 - Jeff Lewis - Financial Post/Energy
CALGARY – Canada risks ceding market share to the United States in
the Pacific as exports of liquefied natural gas from the Gulf of Mexico
ramp up, the managing director and global head of commodities at Citi
Research says.
The U.S. Department of Energy this month approved natural gas exports
from Freeport LNG’s Quintana Island, Texas, terminal, ending a nearly
two-year review of applications. More than 26 export applications,
including projects backed by Sempra, Dominion and BG Group, are pending
review.
Freeport, partly owned by ConocoPhillips Co. and Osaka Gas Co Ltd.,
can export up to 1.4 billion cubic feet of gas a day for 20 years, the
U.S. DoE said, joining Cheniere Energy, Inc. as the only other project
to win approval so far. Japan, the world’s top LNG importer, is actively
seeking new supply agreements to replace contracts that start to expire
in 2015, Ed Morse said during an energy forum in Calgary on Wednesday.
With export volumes from the U.S., Qatar and Australia, the Pacific
basin “could well be oversupplied sooner than people in the marketplace
generally think, and it’s in that context that I think U.S. production
has an advantage over the Canadian production because we can pinpoint a
decision being made for exports in 2013.”
Just three of the projects proposed for Canada’s West Coast have
obtained needed export permits. Pipelines must also be built to connect
remote gas fields in northeast British Columbia with the coast.
Post to be found at:
http://business.financialpost.com/2013/05/29/canadas-lng-market-share-at-risk-after-u-s-approval-of-export-project-citi-research/?__lsa=cfa5-59b1
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