Eastern Canadian Companies Need to Expand Pipeline Capacity to Export LNG

Reuters reported that companies in Eastern Canada that plan to export natural gas to markets overseas require expanded regional pipeline capacity before they can start exporting.

As quoted in the market news:

But firms behind those proposals, such as Spanish oil giant Repsol and Australia’s Liquefied Natural Gas Ltd have one major hurdle to clear: huge investments are needed to expand regional pipeline capacity to feed them, and it is unclear who will pay.

Thomas Kiley, president of the Massachusetts-based Northeast Gas Association, stated:

The interstate pipeline companies are not going to construct facilities unless they have firm commitments.

Click here for the full Reuters report