Canadian pipeline expansion boosts LNG export plans

Tuesday, May 01, 2012

The government of the Canadian province of British Columbia approved in April a gas pipeline expansion that would allow about 2 Bcf/d of gas to flow to the proposed Kitimat LNG export terminal on the country's western coast. The move boosts the prospect for LNG shipments from North America to Asian markets and could support other proposed export projects, analysts said.

The Pacific Trails expansion marked "another key regulatory approval" needed for British Columbia LNG exports to move forward, Rick Margolin, a senior analyst at Bentek Energy, said. Bentek is a unit of Platts. The expansion not only enables more gas to flow to Kitimat, but could also support the British Columbia LNG Export Co-operative project slated to go into service between late 2013 and early 2014, Margolin said. British Columbia LNG Export is smaller in scope than Kitimat, with planned capacity of 250,000 Mcf/d. The expanded Pacific Trails pipeline could also support a third project that could be developed in the region, Margolin said.

To access a complete copy of this reporr, please visit