What B.C.’s LNG megaproject means for 2 due Nova Scotia facilities

Some see it as a vigilance of financier certainty in liquefied healthy gas megaprojects. Others contend it could corner out reduction rival LNG proposals in Canada.

Either way, final capitulation of a vast LNG plan in northern British Columbia has renewed seductiveness in a predestine of dual projects slated for Canada’s East Coast.

Bear Head LNG, a auxiliary of Australia-based Liquefied Natural Gas Ltd., has a site on a Strait of Canso while Goldboro LNG, a Pieridae Energy Canada project, is adjacent to a Maritimes Northeast Pipeline on Nova Scotia’s Eastern Shore.

Both companies contend a preference by 5 partners — a consortium of state-owned and private investors — to pierce brazen with LNG Canada’s $40-billion corner try in Kitimat, B.C., bodes good for vital apparatus projects in a country.

But appetite consultant Tom Adams says a British Columbia growth creates a prospects of a Nova Scotia LNG trickery in a nearby destiny reduction likely.

He says there is a calculable tellurian marketplace for LNG, and that if a B.C. plan moves forward it weakens other projects.

“Every time there is a new entrant it puts rival vigour on all a other proposals,” a eccentric Toronto-based researcher said.

‘Continued skepticism’

Adams says a “really vast boys” have invested in B.C. — Royal Dutch Shell, Mitsubishi Corp., a Malaysian-owned Petronas, PetroChina Co. and Korean Gas Corp. — though a Nova Scotia proposals have nonetheless to attract a same description of investors.

“The majors have by and vast stayed out of it, and we consider that’s another denote of a relations strengths and weaknesses of a growth plans,” he said. “It’s another reason for my continued doubt with honour to LNG in Nova Scotia.”

However, Goldboro LNG has managed to secure a customer.

Uniper SE, a German appetite firm, has sealed a 20-year offtake agreement for half of Goldboro’s available output, a manoeuvre for a Nova Scotia project. The agreement comes with a German government-backed debt guarantee.

Mark Brown, vice-president, business growth for Pieridae Energy, a organisation building Goldboro LNG, says a B.C. plan is good for a whole industry.

“Given a tellurian inlet of a industry, it sends a certain summary to a universe that Canada is back,” he pronounced in an email, observant that a Goldboro plan is aiming for a final investment preference in a initial entertain of 2019.

A digest of a due liquefied healthy gas plan in northern B.C. shows a estimate depot in Kitimat. All 5 primary investors have sealed off on a project. (LNG Canada/Flickr)

Meanwhile, Micah Hirschfield with LNG Ltd., a proponent of Bear Head LNG, says a Kitimat investment increases a viability of exporting Canada’s stranded healthy gas apparatus from both a West Coast to Asia and a East Coast to Europe.

“The volume of gas being used by LNG Canada hardly scratches a aspect of a some-more than 300 years of stranded gas supply that a apparatus has,” he pronounced in an email.

“Both Western Canadian producers and European business commend a significance of being means to trade Canadian gas from both coasts and we continue to swell and sojourn committed to bringing LNG from Bear Head to a tellurian appetite market.”

‘They are portion opposite markets’

Colleen Mitchell, boss of a Atlantica Centre for Energy, an appetite consider tank formed in Saint John, said while plan capitulation in B.C. is a certain sign, it doesn’t indispensably impact a East Coast projects.

“They are portion opposite markets, they have opposite economics and they’re confronting opposite challenges,” she said.

Mitchell pronounced that with no foreseeable onshore or offshore supply in a Maritimes, a biggest jump for any Nova Scotia plan would be anticipating tube ability for gas from western Canada or a U.S.

But tube space is committed good in advance, she said, so a plan proponents will have to secure space or supplement an additional tube — one of a biggest hurdles other than permitting.

‘A unequivocally certain preference for all of Canada’

Ray Ritcey, arch executive officer of a Maritimes Energy Association, pronounced a B.C. plan shows marketplace participants — including a dual companies opposed to launch LNG comforts in Nova Scotia — that there might be a “light during a finish of a tunnel.”

“For a whole accumulation of reasons there is a miss of investment in Canada, quite in a oil and gas and tube sector,” pronounced Ritcey, whose organisation represents appetite companies in eastern Canada.

“The biggest news here is that some of the resources are going to find new ways to market. It’s a unequivocally certain preference for all of Canada.”

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Article source: https://www.cbc.ca/news/canada/nova-scotia/lng-bear-head-goldboro-nova-scotia-1.4851687?cmp=rss