In its 2015 natural gas forecast and LNG report, CAPP has said that Canada needs to connect to the global LNG markets to avoid a decade of decline in natural gas production. CAPP President and CEO, Tim McMillan commented, “accessing the global LNG market can strengthen the long term viability of Canada’s natural gas industry and backstop the significant economic benefits it creates for Canadians.”
US natural gas supplies are reportedly displacing western Canadian gas in the traditional markets of Central Canada, the US Midwest and US Northeast. Without access to global LNG markets to stimulate production of Canada’s more than 100 year natural gas supply, production will decline steadily over the next decade, then remain flat at approximately 13 billion ft3/d until the end of the current forecast period in 2030.
Access to the LNG market globally would enable Canadian production to recover to current levels of 14.5 billion ft3/d by the end of this decade. As LNG export facilities are developed, natural gas demand to fuel these plants could increase production to 17 billion ft3/d by 2030. It has been said that Canada needs prompt regulatory approvals and a commitment to competitiveness in order to attract the billions of dollars of investment required to build an LNG business and expand natural gas production to support it.
McMillan said, “proposed LNG projects require timely political and regulatory decisions because global LNG competition is fierce and involves many well established international suppliers. The window of opportunity for Canada’s LNG market will not stay open forever.”
Edited from press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/16072015/lng-vital-for-canada/