Friday, September 30, 2011
Even as the race to export LNG from western Canada to markets in Asia heats up, Canadian LNG players face an additional obstacle that competing projects in the US may not: building a new pipeline from the producing basins in the region to the terminals in British Columbia.
Analysts said the Kitimat project's 2015 to 2016 in-service date is fairly realistic.
"At this point, the costs are much more reasonable than anything we've seen coming out of some of the Australian projects and based on our analysis will be competitive with other projects in the Pacfic Basin," said Chris Micsak, an energy analyst for international gas at Platts unit Bentek Energy.
Micsak also said the project would have to compete with others for supply, including a possible Shell Canada terminal at Prince Rupert. "It could be harder to source gas for those projects than Kitimat, which will have its own dedicated pipe," he said.
For a complete copy of this report, please visit Platts