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“There will definitely be challenges in constructing out new LNG capability in Canada, however the nation has a lot in its favour and will play a bigger function in assembly international demand within the close to future, particularly in Asia,” stated Dulles. “Canada may very well be well-positioned resulting from its strategic location for transport benefits to Asia, help from Canadian First Nations, and forward-thinking emissions rules,” stated Dulles Wang, Director of Americas Gasoline & LNG at Wooden Mackenzie on the LNG2023 convention in Vancouver.
Presently, the US and Qatar account for 40% of worldwide LNG provide. With their abundance of provide, infrastructure and industrial partnerships, Wooden Mackenzie forecasts their mixed market share to exceed 60% by 2040. The US will proceed to cement its place as the biggest LNG provider on the planet, constructing on the record-breaking industrial momentum from 2022.
Underpinned by strong LNG demand development, Wooden Mackenzie tasks that one other 100 million tpy of capability of LNG will likely be required to satisfy demand development by the mid-2030s, a 25% uplift to present provide and along with tasks which might be presently beneath development. A lot of this demand will likely be in Asia, the place China and a number of other different rising economies need to rely extra closely on gasoline as they swap away from coal.
“Sustained LNG demand in Asia will drive new alternatives out there and Canada is well-positioned to capitalise. It does have challenges, as development prices are excessive for brand spanking new pipelines, however help from First Nations will likely be crucial to safe social license, and the potential is kind of excessive. Canada can produce LNG with a few of the lowest emissions depth on the planet due to its entry to hydroelectricity, emissions rules, and targets. Nations which might be searching for low emissions assets to satisfy their very own local weather targets will likely be drawn to this provide,” added Wang. “The Canadian LNG panorama is evolving to deal with the high-cost notion. Its native benchmark, AECO, persistently trades at a wholesome low cost to Henry Hub costs. With its key proximity to north Asia markets, its exports can keep away from the constraints of the Panama Canal and reduce transport prices by greater than US$2/MMBtu in contrast with US Gulf Coast tasks going the great distance spherical. The business’s adoption to close shore FLNG know-how, Canada’s carbon benefit, and LNG portfolio diversification might all improve the attractiveness of Canadian LNG within the international market.”
Learn the article on-line at: https://www.lngindustry.com/special-reports/13072023/canadian-lng-has-potential-to-meet-growing-asian-demand/
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