October 27, 2020 Read More →

B.C. LNG too expensive to be competitive in Chinese market

Oilprice.com:

British Columbia is one very pro-LNG province. Both main parties are firmly in favor of LNG projects, and both have made them a prominent point in their reelection campaigns, Canadian media report. But the LNG bet might turn sour, according to a new report.

In July of this year, the Conference Board of Canada released a report—funded by the Canadian LNG Alliance—that said developing the LNG industry of British Columbia could create as many as 100,000 new jobs, some $94 billion in revenues, and $11 billion in additional GDP annually. According to the Institute for Energy Economics and Financial Analysis, however, these projections have little to do with reality.

The main problem identified by the IEEFA is the price. Canadian liquefied natural gas is too expensive to be competitive in the biggest markets, notably the Chinese market. According to calculations by the authors of the IEEFA report, under the best-case scenario, Canadian LNG would cost $8.30 per million Btu. The average Chinese price for LNG at the city gate, however, is $8.23.

[Irina Slav]

More: Is Canadian LNG Too Expensive To Compete?

Posted in: IEEFA In the News

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