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US exports of LNG gas reached record highs in recent months (File Photo)

Piped gas imports, meanwhile, are projected the 83.3 bcf (2.36 bcm) per day of production
to climb to an average 9 bcf (254.88 mcm) per recorded in 2020.
day in 2021 and 9.2 bcf (260.54 mcm) per day Most of this year’s forecast decline in gas con-
in 2022, up from 7.9 bcf (223.73 mcm) per day sumption was attributed to lower demand from
in 2020. the gas-fired power sector, with weaker demand
Despite the expansion of the pipeline grid expected to continue as a result of rising feed-
to transport gas both to and within Mexico, stock prices.
the EIA said LNG exports were set to take over US exports of LNG have reached record
thanks to the gradual recovery in global LNG highs in recent months, with the EIA noting that
demand, high winter demand from Asian buy- sales had averaged 10.3 bcf (291.7 bcm) per day
ers and anticipated global regasification capac- from March through to the end of May. Those
ity expansions in both existing and new markets levels, it said, were supported by high spot LNG
over the next two years. prices in Asia and Europe and continued recov-
Underpinning this rise in sales will be an ery in global demand levels.
anticipated 1.3% year-on-year rise in the coun- While the EIA said that exports in June were
try’s dry natural gas production in 2021 to aver- estimated to have declined to 9 bcf per day, it said
age 92.6 bcf (2.62bn cubic metres) per day. At the that this was likely the result of both planned and
same time, the administration said it expected unplanned outages at several of the country’s liq-
consumption to contract by 1.1% this year from uefaction facilities. ™

POLICY
Suncor, Cenovus put cost of

net-zero pledge at nearly $60bn

THE Canadian oil sands industry will need to The CEOs also pointed out, though, that
spend approximately CAD75bn ($59.75bn) to reaching this goal would be difficult as well as
reduce its net greenhouse gas (GHG) emissions expensive.
to zero by 2050, according to the heads of Sun- According to Little, about half of the cuts that
cor Energy and Cenovus Energy. oil sands developers plan to make will involve
Both Cenovus CEO Alexander Pourbaix capturing carbon dioxide at production sites
and Suncor CEO Mark Little declared during and then sequestering it far below the surface.
an interview with Bloomberg earlier this week This is such a costly process that Norway’s gov-
that they still supported plans for achieving the ernment has agreed to foot two thirds of the bill,
net-zero target by 2050. Little stressed this point, and Canada’s government may need to follow
saying: “We have one Achilles heel: It’s green- suit, he said.
house gas emissions. We can bury our heads in At the same time, he commented, there is
the sand and become a victim, or we can actually also considerable uncertainty about what steps
deal with it.” to take.

Week 27 08•July•2021 www. NEWSBASE .com P7