Latest news with #Shell-led
Edmonton Journal
3 days ago
- Business
- Edmonton Journal
Varcoe: From no business case to promoting LNG — gas producers welcome Ottawa's new support for growing sector
Like a stone skipping across calm water, it didn't take long for comments by Federal Natural Resources Minister Tim Hodgson touting the benefits of Canadian liquefied natural gas to ripple through the energy sector. Article content Canada's LNG is cleaner than competing U.S. suppliers and there are interested buyers for it, Hodgson said Tuesday on the Vassy Kapelos Show. Article content Article content Article content For Peyto Exploration & Development CEO Jean-Paul Lachance, having the federal minister in charge of energy actively promote LNG exports from Canada — and potentially include these initiatives on Ottawa's new major projects list under Bill C-5 — is telling. Article content 'The fact we're hearing that from our own government now, the federal government, is a very positive sign. It's a long way from, 'There's no business case for LNG,' which we heard from the previous government,' Lachance said in an interview Wednesday. Article content 'That gives me some confidence that there's going to be some support for LNG projects within Canada . . . It sends the right signal to the capital markets that we're open for business here.' Article content The Carney government recently passed Bill C-5 as it seeks to expedite approval of major infrastructure deemed to be of national significance. It's now consulting over which projects should make the cut. Article content Article content The Alberta government and many industry leaders are pushing for the list to include a major export pipeline to ship more oil to the West Coast, although no proponent has made a formal project proposal. Article content Article content The prospects for new LNG projects being included on the list appear strong and could provide a shot in the arm for western Canadian natural gas producers to attract new investment and boost output. Article content The colossal Shell-led LNG Canada terminal began moving first cargoes to customers this summer, launching a new energy export sector for the country.
Calgary Herald
3 days ago
- Business
- Calgary Herald
Varcoe: From no business case to promoting LNG — gas producers welcome Ottawa's new support for growing sector
Like a stone skipping across calm water, it didn't take long for comments by Federal Natural Resources Minister Tim Hodgson touting the benefits of Canadian liquefied natural gas to ripple through the energy sector. Article content Canada's LNG is cleaner than competing U.S. suppliers and there are interested buyers for it, Hodgson said Tuesday on the Vassy Kapelos Show. Article content Article content Article content For Peyto Exploration & Development CEO Jean-Paul Lachance, having the federal minister in charge of energy actively promote LNG exports from Canada — and potentially include these initiatives on Ottawa's new major projects list under Bill C-5 — is telling. Article content Article content 'The fact we're hearing that from our own government now, the federal government, is a very positive sign. It's a long way from, 'There's no business case for LNG,' which we heard from the previous government,' Lachance said in an interview Wednesday. Article content 'That gives me some confidence that there's going to be some support for LNG projects within Canada . . . It sends the right signal to the capital markets that we're open for business here.' Article content The Carney government recently passed Bill C-5 as it seeks to expedite approval of major infrastructure deemed to be of national significance. It's now consulting over which projects should make the cut. Article content Article content The Alberta government and many industry leaders are pushing for the list to include a major export pipeline to ship more oil to the West Coast, although no proponent has made a formal project proposal. Article content Article content The prospects for new LNG projects being included on the list appear strong and could provide a shot in the arm for western Canadian natural gas producers to attract new investment and boost output. Article content The colossal Shell-led LNG Canada terminal began moving first cargoes to customers this summer, launching a new energy export sector for the country.
Business Recorder
31-07-2025
- Business
- Business Recorder
US natgas futures ease as production rises
NEW YORK: US natural gas futures fell on Wednesday as higher production and forecasts for milder weather that are expected to reduce cooling demand weighed on prices. Front-month gas futures for September delivery on the New York Mercantile Exchange were down 10.30 cents, or 3.3%, to $3.04 per million British thermal units at 09:39 a.m. EDT, after hitting its highest level since July 23 earlier in the session. 'It appears that the market is showing at least for now an ample supply,' said Thomas Saal, senior vice president for energy at StoneX Financial. LSEG said average gas output in the Lower 48 has risen to 107.5 billion cubic feet per day so far in July, up from a monthly record high of 106.4 bcfd in June. With the market now trading September futures, prices are drifting slightly lower as September is typically associated with milder weather compared to August, Saal added. Financial firm LSEG forecast average gas demand in the Lower 48, including exports, falling from 113 bcfd this week to 108 bcfd next week. It also estimated 235 cooling degree days over the next two weeks, down from 239 estimated on Monday. CDDs, used to estimate demand to cool homes and businesses, measure the number of degrees a day's average temperature is above 65 degrees Fahrenheit (18.3 degrees Celsius). Meanwhile, Shell-led LNG Canada is experiencing technical problems as it ramps up production at its liquefied natural gas plant at Kitimat, British Columbia, with one LNG tanker diverting away from the facility without the superchilled fuel in recent days, according to four sources and LSEG ship tracking data. Elsewhere, Dutch and British wholesale gas contracts were largely steady after some initial gains, amid an unchanged short-term outlook but risks of increased competition for liquefied natural gas (LNG) could be a concern.
Time of India
01-07-2025
- Business
- Time of India
Canada ships first LNG export cargo from Pacific coast
Canada's first-ever LNG export cargo has been shipped from the country's Pacific Coast en route to Asia, a spokesperson for the Shell-led LNG Canada said on Monday. The cargo was loaded onto the tanker Gaslog Glasgow from LNG Canada's site in Kitimat, British Columbia, just over a week after the facility confirmed first production and became the first large-scale commercial LNG operation in the country. LNG Canada is the first major LNG facility in North America with direct access to the Pacific Coast. It starts at a time when trade tensions with the United States have heightened Canada's desire to diversify its export markets. "This is something Canada really needs right now," LNG Canada CEO Chris Cooper said in an interview, pointing to those trade tensions. The LNG Canada project, which is a joint venture between Shell Plc , Petronas, PetroChina, Mitsubishi Corp and Kogas, cost approximately CDN$40 billion (US$29.4 billion) to construct and has been billed as the largest private-sector investment in Canadian history. When fully ramped up, it will have the capacity to export 14 million metric tonnes of LNG per year. Shell and its partners are working towards reaching a final investment decision next year for doubling the project's capacity, the chief of Shell's gas business Cedric Cremers told Reuters. Canada is the world's fifth-largest producer and fourth-largest exporter of natural gas, but until now virtually all of those exports have gone to the United States. LNG Canada offers the country's natural gas producers access to energy-hungry Asian markets for the first time. Its Pacific coast location offers a direct shipping route to Asia without needing to transit the Panama Canal, something project partners hope will give Canadian LNG an advantage against US competitors whose facilities are located on the other side of the continent along the Gulf coast. LNG Canada also has a supply cost advantage. Prices for Canadian natural gas — which will be shipped to LNG Canada from the shale fields of northeast British Columbia via the Coastal Gaslink pipeline — currently trade at less than half the price of the US Henry Hub benchmark. "West coast LNG in Canada competes exceptionally well against anything being developed in the United States," Petronas Canada CEO Mark Fitzgerald said at a conference in Calgary in June. The startup of LNG Canada — which was first proposed in 2012 — comes almost 10 years after the United States first began exporting LNG from the lower 48 states. The United States has since become the world's largest LNG exporter, leaving many in Canada's energy sector to say that their country has been too slow to develop its own industry. But Canada has additional LNG projects waiting in the wings. Two smaller Pacific coast LNG facilities — the Cedar LNG and Woodfibre LNG projects — are currently under construction, and LNG Canada itself is considering a second-phase expansion of the project, which would double the facility's capacity. While Canadian LNG does have certain beneficial cost elements, it also has negatives, said RJ Johnston, incoming director of energy and natural resource policy at the University of Calgary's School of Public Policy. Constructing new Canadian LNG facilities and pipelines along British Columbia's remote northern coast is more challenging and expensive than along the US Gulf, where the infrastructure to serve the LNG sector is already developed, he said. Ed Kallio, executive advisor for data analytics and forecasting firm Incorrys, said the business case for expanding Canada's LNG production is weakened by greenhouse gas regulations that US producers don't face. "The major risk for future LNG development in Canada is the price risk for (clean) electricity to power these processes," he said.
The Sun
24-06-2025
- Business
- The Sun
Shell's LNG Canada hits key milestone with first gas output
HOUSTON/CALGARY: The Shell-led LNG Canada facility has produced its first liquefied natural gas for export in Kitimat, British Columbia, a spokesperson for the project confirmed on Sunday. The new production, which will go mainly to Asia, comes amid concerns over disruptions to the 20% of global gas supply coming from Qatar, due to the Israel-Iran conflict and the possibility of Tehran closing the Strait of Hormuz, a key shipping lane. The facility has not yet loaded its first LNG export cargo, although LNG Canada said it remains on track to do by the middle of this year. The facility is the first large-scale Canadian LNG project to begin production and also the first major LNG facility in North America with direct access to the Pacific Coast, significantly reducing sail time to Asian markets when compared with U.S. Gulf coast facilities. When fully operational it will have a capacity to export 14 million metric tonnes per annum (mtpa), according to company statements. Shell and its partners in the LNG Canada project are working toward reaching a final investment decision next year for doubling the project's 14 million metric tonnes per year (mtpa) capacity, Cederic Cremers, Shell's president of integrated gas, told Reuters. He added he expected the project's first phase to fully reach its 14 mtpa capacity next year, after starting up this month. LNG tanker Gaslog Glasgow is approaching LNG Canada's Kitimat port, according to LSEG ship tracking data. The vessel is expected to arrive on June 29 and will be loaded with LNG, the sources said. The LNG Canada project is a joint venture between Shell Plc , Petronas, PetroChina, Mitsubishi Corporation and Kogas. Once the facility enters service, Canadian gas exports to the U.S. will likely decline, traders said, as Canadian energy firms will have another outlet for their fuel. For now, the U.S. is the only outlet for Canadian gas. Canada has two other smaller LNG export facilities also under construction on the Pacific Coast. The facilities, Woodfibre LNG and Cedar LNG, are expected to be completed between 2027 and 2028. Canada exported about 8.6 billion cubic feet per day (bcfd) of gas via pipelines to the U.S. in 2024, up from 8.0 bcfd in 2023 and an average of 7.5 bcfd over the prior five years (2018-2022), according to data from the U.S. Energy Information Administration. That compares with a record 10.4 bcfd in 2002.
