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Canada needs to connect to global liquid natural gas (LNG) markets to avoid a decade of decline in natural gas production, the Canadian Association of Petroleum Producers said in its 2015 natural gas forecast and LNG report.
“Accessing the global LNG market can strengthen the long-term viability of Canada’s natural gas industry and backstop the significant economic benefits it creates for Canadians,” said CAPP president and chief executive officer Tim McMillan.
U.S. natural gas supplies are displacing western Canadian gas in the traditional markets of Central Canada, the U.S. Midwest and U.S. Northeast, the CAPP forecast shows.
Without access to global LNG markets to stimulate production of Canada’s more-than-100-year natural gas supply, production will decline steadily over the next 10 years, then remain flat at about 13 billion cubic feet per day (Bcf/day) until the end of the current forecast period in 2030.
Access to global LNG markets would enable Canadian production to recover to current levels of 14.5 billion Bcf/day by the end of this decade. As LNG export facilities are developed, natural gas demand to fuel these plants could raise production to 17 Bcf/day by 2030.
Canada needs prompt regulatory approvals and a commitment to competitiveness in order to attract the billions of investment dollars required to build an LNG business and expand natural gas production to support it.
“Proposed LNG projects require timely political and regulatory decisions because global LNG competition is fierce and involves many well-established international suppliers,” McMillan said.
“The window of opportunity for Canada’s LNG market will not stay open forever.”
The CAPP 2015 Natural Gas Forecast and LNG report are available here.
Source: CAAP Press Release
