Page 6 - NorthAmOil Week 06 2021

NorthAmOil COMMENTARY NorthAmOil

Canadian developers

seek to step up on LNG

Developers in Canada are hoping to make progress on

growing the country’s LNG industry this year with FIDs

on additional projects, after missing previous spikes in
demand for the super-chilled fuel

CANADA CANADA is late to the LNG scene, but still Targeted FIDs
hopes to turn its fortunes around as it misses out The two projects that are currently targeting an
WHAT: on helping to meet another spike in demand for FID later this year are Pacific Oil & Gas’ Woodfi-
Canada is hoping to the super-chilled fuel. bre LNG on the BC coast and Pieridae Energy’s
see FIDs on additional The country was previously among the Goldboro LNG in Nova Scotia, Eastern Can-
LNG projects this year, front-runners racing to develop new liquefac- ada. Both projects have the advantage of having
as well as progress on tion capacity in the last decade, with around secured committed buyers, and while both were
the construction of LNG 20 export projects proposed, mainly on British delayed last year amid the coronavirus (COVID-
Canada. Columbia’s West Coast. However, the industry 19) pandemic, they are now in a comparatively
downturn that began in 2014 led to a num- good position to move forward.
WHY: ber of developers re-evaluating their capital Woodfibre is the smaller of the two projects
The country has abundant spending plans and backing out of costly LNG moving towards FID, with a planned capac-
natural gas resources megaprojects. ity of 2.1mn tpy. The project has several nota-
and has continued to Out of the previously crowded field of pro- ble features, including a benefits agreement
miss spikes in demand posed Canadian LNG export projects, only with the Squamish First Nation, which pro-
for LNG overseas. LNG Canada is now under construction, duced its own environmental impact study for
and beyond that a small number of proposals Woodfibre LNG. Pacific has agreed to abide
WHAT NEXT: remain on the table. However, Canada hopes by all 25 of the environemtnal impact study’s
Even if new projects to grow its nascent LNG industry further this recommendations.
proceed to FID this year it year, with two final investment decisions (FIDs) Pacific has also touted Woodfibre’s envi-
will be some time before currently on the table for 2021. While both of ronmental credentials – the project would use
they start up. the projects would be smaller than the 14mn electricity instead of natural gas for the liquefac-
tonne per year (tpy) LNG Canada, they would tion process. As a result, the company says the
nonetheless bring the country a step closer to carbon emissions intensity of Woodfibre LNG
establishing itself as a significant LNG producer would be amongst the lowest in the world.
later this decade. Goldboro LNG, meanwhile, would have a

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