Canadian LNG Projects

Context

Much has changed in the North American liquefied natural gas (LNG) market in the past decade. Throughout the early to mid-2000’s, concerns over decreasing conventional supplies of domestic natural gas led to bullish predictions about future LNG demand in North America, resulting in an investment boom to build new LNG import facilities.

Around 2008, dramatic changes in the market on account of surging U.S. unconventional natural gas production (mostly from shale gas) started to change the outlook for LNG imports. Natural gas production increased, North American prices fell significantly, and the expected need for imported LNG was dampened.

As unconventional gas production increases, the U.S. is becoming increasingly self-sufficient with respect to natural gas. Pipeline exports from Canada to the U.S. are decreasing. With ample unconventional resources, industry is shifting its focus from importing LNG into North America to exporting LNG from North America.  The export of LNG could facilitate Canadian natural gas production growth and result in significant investment, jobs and economic growth.

There may be a short window of opportunity for Canada to capitalize on its LNG export potential, as there is intense competition around the world for these investments. The Government of Canada is working closely with British Columbia and other provinces to create conditions supporting the development of an LNG industry in Canada.

Canadian LNG Projects

As the North American natural gas industry moves away from importing LNG, Canada and the United States have a considerable surplus of regassification capacity. In 2013, Canadian imports of LNG represented 10% of capacity and U.S. imports of LNG represented 1% of US regassification capacity.

EXISTING IMPORT TERMINAL
Project Location
Canaport LNG Saint John, New Brunswick

Canadian LNG Import and Proposed Export Facilities
(September 2017)

LNG Project Export Licence
WEST COAST – British Columbia  
Douglas Channel LNG (Cancelled) 25 Years
Kitimat LNG 20 Years
LNG Canada 40 Years
Cedar LNG Project 25 Years
Pacific NorthWest LNG (Cancelled) 40 Years
Prince Rupert LNG (Cancelled) 25 Years
Aurora LNG (Cancelled) 25 Years
Grassy Point LNG 25 Years
WCC LNG 40 Years
Orca LNG 25 Years
New Times Energy 25 Years
Watson Island LNG  
Kitsault Energy Project 20 Years
Stewart LNG Export Project 25 Years
Triton LNG 25 Years
Woodfibre LNG 25 Years
WesPac LNG Marine Terminal 25 Years
Discovery LNG 25 Years
Steelhead LNG 25 Years
Nisga’a LNG  
EAST COAST  
Goldboro LNG  (Nova Scotia) 20 Years
Bear Head LNG (Nova Scotia) 25 Years
A C LNG  (Nova Scotia) 25 Years
Saint John LNG  (New Brunswick) 25 Years
Energie Saguenay (Quebec) 25 Years
Stolt LNGaz (Quebec) 25 Years
TUGLIQ Gaz Naturel Quubec Inc. (Quebec) Applying

Regulation

While the ongoing operation of LNG terminals generally falls under provincial regulation, most LNG terminal proposals require both federal and provincial environmental assessments and permits. 

Most of the proposed LNG facilities require new pipelines or the expansion of existing pipelines.  Intra-provincial pipelines are provincially regulated, while pipelines that cross a provincial or international border are federally regulated.  For more information on pipelines, please see Frequently Asked Questions (FAQs) Concerning Federally-Regulated Petroleum Pipelines in Canada.

A permit from the National Energy Board (NEB), Canada’s federal energy regulator, is required to export LNG from Canada. The NEB reviews export licence applications to ensure that the proposed volume of gas to be exported is surplus to Canadian requirements.

Useful Links

These websites provide useful background information on LNG and LNG regulatory processes in Canada.