Starting with LNG Canada, producers will finally have access to new customers overseas
By Cody Ciona
Canada’s natural gas production and exports are primed for growth as LNG projects come online, according to Houston, Texas-based consultancy RBN Energy.
Long-awaited LNG export terminals will open the door to Asian markets and break the decades-long grip of the United States as the sole customer for Canada’s natural gas.
RBN projects that Canada’s natural gas exports will rise to 12 billion cubic feet per day (bcf/d) by 2034, up from about 8 bcf/d today. But as more LNG terminals come online, less of that natural gas will head south.
“We think the real possibility exists that the amount of natural gas being exported to the United States by pipeline will actually decline,” said Martin King, RBN’s managing director of North America energy market analysis, on a recent webinar.
RBN’s analysis suggests that Canada’s natural gas exports to the United States could drop to 6 bcf/d by the early 2030s compared to around 8 bcf/d today.
With the first cargo from the LNG Canada terminal at Kitimat, B.C. expected to ship in late June, Canada will finally have access to new markets for natural gas. The first phase of the project will have capacity to ship about 1.8 bcf/d.
And more projects are on the way.
LNG Canada’s joint venture partners are considering a second phase that would double export capacity.
Also at Kitimat, the Cedar LNG project is under construction and is expected to be completed in 2028. The floating terminal led by the Haisla Nation will have capacity to export 0.4 bcf/d.
Woodfibre LNG, located near Squamish, B.C. began construction in late 2023 and is expected to be substantially completed by 2027, with export capacity of about 0.3 bcf/d.
Expansions of LNG Canada and Cedar LNG could put LNG exports into the range of 5 bcf/d in the early 2030s, King said.
This article was originally produced by the Canadian Energy Centre. See the original article here.