Posted on 07/29/2017 7:31:23 AM PDT by Lorianne
A $27 billion energy project in Canada just became the latest casualty of a worldwide glut of natural gas.
Malaysia’s Petroliam Nasional Bhd abandoned on Tuesday its plans for the Pacific Northwest LNG terminal, a plant that would have liquefied Canada’s gas and sent the fuel by tanker from the western shores of British Columbia to buyers in Asia. Petronas cited market conditions in its decision.
Pacific Northwest LNG joins a growing list of projects that have been killed in recent months by plummeting LNG prices, throwing the economics of export terminals from Australia to Russia to Mozambique into question. Prices have crashed as increasing volumes of gas from Australia and America’s shale formations hit the water, inundating the market with so much supply that analysts say demand may not catch up until the next decade.
“Developers have been trying to jump on a rather full and over-hyped bandwagon,” Muhammed Ghulam, an equity research associate at Raymond James in Houston, said by email. “There is simply too much LNG export capacity planned in North America, and cancellations, especially of Canadian projects, are likely to continue.”
Last year, Woodside Petroleum Ltd. shelved its $40 billion plan to build a floating LNG terminal off Australia’s western coast and a project in Oregon was canceled. More than two-thirds of the LNG terminals proposed to come online in the mid-2020s probably won’t get built, Sanford C. Bernstein & Co. said in May.
Petronas said the decision to drop the Pacific Northwest project was driven by “prolonged depressed prices and shifts in the energy industry.” The company and its partners -- China Petrochemical Corp., Japan Petroleum Exploration Co., Indian Oil Corp. -- remain committed to developing natural gas assets they’ve bought in Canada and “will continue to explore all options” for long-term investments, according to a statement.
SNIP
Does this mean the price goes down or up? If there’s a buck to be made I say it will go on the market no matter how low the profit margin.
Good...more for us to sell!
In fact, the tremendous increase in natural gas supply has actually revived America’s plastics industry, since natural gas is a perfect base material to make plastics.
screw Canada
buy American
Maybe Trudeau can inhale it
[In fact, the tremendous increase in natural gas supply has actually revived America’s plastics industry, since natural gas is a perfect base material to make plastics.]
I believe this. In my industry, Uponor (PEX piping) is vastly increasing their production capacity here in the US. I’m sure this is a factor in their decision among other things.
Justine Trudeau jabs Trump with pointless, juvenile and spiteful snubs
Trump guts Canada’s entire energy policy and and nullifies billions of dollars of Canadian energy infrastructure investment
Bambi vs Godzilla
I chuckle. So may predictions of us running out of fossil fuels.
long term peak demand is a possibility. Means lower fossil fuel prices.
All those lame energy efficiency programs from years gone by are finally coming to pay off.
The advanced economies are basically able to increase GDP with minimal
increase in energy use. Japan’s been doing this since 1973. Germany since the 1990s. And we are nearly there.
China and Eastern Europe aren’t too far behind.
And the r.o.w. don’t consume much anyhow.
Thank you free market !
If Australia has enough gas to export..it is shorter distance
I though the North Sea produced a lot of gas...
I read a hundred years for the US...if we export probably less
I guess former POTUS Carter’s prediction that we are running out of oil isn’t going to happen.
I believe this was the facility at Kitimat. It is the only deep water fjord on the entire coast that can be used for this.
Another victim of the Saudi plan to kill off possible competition to it’s oil customers.
If I am not mistaken, this was the project that was going to take the place of the Keystone Pipeline if it was never built.
Our PG&E natural gas rate went through the roof this past winter with increasing prices when you passed certain useage levels.
Inspite of installing a super efficient gas hot water heater, a new high insulation roof to go with the double paned windows and the ability to close off 2/3’s of our house with a simple door (enables us to hold the heat to 60=62 degrees in 2/3’s of our home and a nice 68 where we spend 98% of the time. We installed two new efficient heating/Ac units.
Our natural gas bills were the highest in 40 years.
We have single friends living in small townhomes or apartments whose Gas bills were higher than ours.
As usual someone is $crewing the American middle with a surplus of natural gas.
I wonder what part of the copper market was water piping for houses. You rarely see water piping run in copper in homes anymore, it is all PEX or a similar tubing.
Do you mean Americans can have warm houses again like I remember from childhood?
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