According to Reuters, the commencement of the LNG Canada project in Kitimat, British Columbia, may just be the first ripple in a wave of further LNG megaproject approvals – potentially avoiding the long-predicted supply crunch in 2020.
TThe launch of Royal Dutch Shell and partners’ LNG Canada project comes just weeks after Qatar’s recent announcement regarding plans to expand its already world-leading annual output of 77 million tpy to 110 million tpy. It is estimated that these projects will boost the global LNG trade by approximately 300 million tpy, and subsequently help ease a supply shortage that has been forecast to occur in the next decade. The emergence of surging LNG consumer markets, such as China, were the main causes for concern which led to these forecasts.
While there is undoubtedly great optimism surrounding these projects, they may just represent the tip of the iceberg. Reuters sources suggest that a host of other approvals (FID’s) are expected to come to light in the near future, as LNG spot prices slowly begin to recover from recent slumps. Indeed, Wood Mackenzie’s director of North America gas reportedly believes that 2019 could be the busiest year of LNG FID’s yet.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/03102018/lng-canada-the-tip-of-a-megaproject-iceberg/