The Conversation (0)
According to the Globe and Mail, a recent gas deal signed by Russia and China may endanger British Columbia’s plans to become a major exporter of liquefied natural gas.
According to the Globe and Mail, a recent gas deal signed by Russia and China may endanger British Columbia’s plans to become a major exporter of liquefied natural gas.
As quoted in the publication:
In the LNG business, global trade flows are driven by prices or, more precisely, price differentials between where natural gas is produced and where it’s sold. British Columbia’s plans to become a big natural gas exporter hinge on the wide disparity between Asian and North American prices. In Asia at the moment, natural gas is selling for upwards of $15 per thousand cubic feet. On this side of the Pacific the cost is around $4.50 per mcf. Getting that gas from here to there is tricky, but it’s easy to see how much money there is to be made if you can pull it off.