@GPA Midstream: LNG Exports Could Relieve Canadian Gas Pinch

Canada needs LNG exports to offset its shrinking market in the U.S., the president of Gas Processing Association Canada said on Tuesday.

Greg Bury, of Keywest Projects Ltd., Calgary, spoke at the GPA Midstream Association’s annual meeting in Austin, Texas.

He said 53% of Canada’s gas production is exported to the United States, where it comprises 11% of gas supply. Bury said Canada’s exports are being backed out by growing U.S. production.

“We need to build LNG export facilities in Western Canada,” he said, adding that “Canada is closer than most global LNG export facilities to the large Asian gas market.”

Bury said the gas industry’s best hope appears to be a C$40 billion LNG export project proposed for Kitimat, British Columbia. Shell, which is leading an industry partnership, is expected to make a final investment decision later this year.

Meanwhile, Asian gas markets are changing. Adam Valentine, of Freeport LNG Development, said the 30 Asian LNG buyers in 2015 were mostly gas utilities and large manufacturing firms. Now there are many additional, smaller buyers demanding more flexible supply contracts.