CALGARY – A natural gas deal signed between Russia and China includes some mindbogglingly large numbers — but observers say it’s not big enough to keep Canadian exports out of that burgeoning market.
The value of the contract — signed amid growing isloation from Russia’s traditional customers to the west — is pegged at $400 billion and covers a 30-year period.
Talisman Energy CEO Hal Kvisle says it’s a big deal, but it doesn’t shut the door on liquefied natural gas exports from Canada.
Gordon Houlden, director of the University of Alberta’s China Institute, says China’s demand for natural gas is massive as it looks to replace coal-fired power generation with cleaner-burning fuels.
Houden says China wants to buy its gas from a wide array of different suppliers, including Canada.
However, he says in order for Canada to compete globally as an LNG supplier it must build export infrastructure swiftly.