The Globe and Mail: LNG exports to Asia Crucial to Canadian Natural Gas Industry

The natural gas industry is counting on energy exports to Asia to lift Canadian producers out of a slump.

Exports of liquefied natural gas to energy-thirsty customers in Asia are crucial because the United States has been sharply reducing its reliance on Canada for gas supplies, the Canadian Association of Petroleum Producers said Wednesday.

The amount of natural gas that Canada exports to the United States has fallen almost 30 per cent since 2007. “No recovery is anticipated due to the emergence of large volumes of U.S. natural gas production from unconventional supply sources,” the association said in its 50-page report. “To realize its full resource potential, Canadian producers will require access to new markets such as those that can be reached through the export of LNG.”

There are 19 B.C. LNG proposals in a range of preliminary to advanced stages, though no liquefaction terminals are under construction yet. Industry experts say there is room for only a handful of terminals due to fierce global competition for exports to Asia. Even assuming a relatively modest launch of LNG exports, Canadian natural gas production would climb to 17 billion cubic feet a day by 2030 from the current 14.5 billion, the association said. MORE