Canada’s first exports of liquefied natural gas may soon be heading overseas

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In 2016 Cheniere Energy Inc. built an LNG export terminal along Louisiana’s coast and became the only company shipping U.S. shale gas by tanker. Now it’s looking for supplies to send abroad.

It’ll receive supplies from the Montney shale play, which straddles Alberta and British Columbia. “We recently entered into our first supply deal to receive Montney gas, on a Henry hub index, from a Canadian producer,” Chief Commercial Officer Anatol Feygin said on a conference call, referring to the Louisiana gas price benchmark.

“We’re able to build a portfolio of supply from domestic gas producers and take full advantage of the cost-competitive basins across the U.S. […] In fact, it doesn’t stop at the U.S., as we recently entered into our first supply deal to receive Montney gas.” – he also said.

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The Montney Formation is a stratigraphical unit of Lower Triassic age in the Western Canadian Sedimentary Basin in British Columbia and Alberta

 

Canada’s gas explorers are having great lengths go to get their fuel to market as they face escalating competition from U.S. shale drillers at home. liquefied natural-gas export terminals have been proposed along Canada’s West Coast, but it’ll be years before any are up and running (as a result of environmentalists and native groups protests). According to Victoria Zaretskaya, an analyst with the Energy Information Administration, no Canadian gas has ever been exported as LNG.

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Who knows, maybe one day tanker with Canadian LNG will arrive at Polish LNG Terminal in Swinoujscie.

sources: boereport.comcheniere.combloomberg.combreakingenergy.com

 

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