NEWS

Natural gas industry growth hinges on LNG: CAPP

07/15/2015 02:00 EDT | Updated 07/15/2016 05:59 EDT
The organization representing Canada's oil and gas industry is warning that natural gas production will decline in the next decade if no new export facilities are constructed.

The Calgary-based Canadian Association of Petroleum Producers said Canada needs access to global liquified natural gas markets to help stimulate the industry.

About two dozen LNG projects are proposed in B.C., but analysts expect only a few to actually be constructed.

"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," said CAPP chief executive Tim McMillan in a release.

Canadian natural gas production is about 14.5 billion cubic feet per day and could fall to 13 Bcf/day in the next ten years. According to CAPP, production could rise to 17 Bcf/day by 2030 if LNG export facilities are developed.

"The window of opportunity for Canada's LNG market will not stay open forever." said McMillan.

This week, B.C. politicians started debating a $36-billion LNG agreement which the Liberal government claims will lay the groundwork for the province's future. The government needs legislative approval to enter into an agreement with Pacific NorthWest LNG, a consortium led by Malaysian energy giant Petronas. The company is proposing an export terminal near Prince Rupert.

Spanish energy company Repsol has also applied to convert New Brunswick's Canaport LNG plant may be converted into an export terminal.

MORE:cbcNews