Friday, October 31, 2014

It’s not only oil that’s hurting…

There are currently 18 LNG projects proposed for the British Columbia coastline, but none have been given a green light to advance. The global gas market is now too uncertain to build, so companies are having to rethink the feasibility of their investments. Some examples are shown here:

> BG Group to delay planned B.C. LNG terminal

> B.C. LNG Alliance says LNG boom for B.C. 'not a foregone conclusion'

> Petronas LNG: CEO threatens 15-year delay to B.C. project

> Chevron won't be rushed on Kitimat LNG decision

We can probably expect lower heating costs this winter, but what does this say about the sustainability of the industry? In the last month alone, it’s changed from being schedule-driven to economics-driven. If the expansion of this industry is postponed another 5-15 years, what will be its greater impact?