China’s Gas Deal With Russia a Problem for BC LNG

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.

Click here to read the full Globe and Mail article.