LNG Liquefaction for the Asia-Pacific Market: Canada's Place in a Global Game
Published On: July 15, 2015
Study No. 148
The Canadian Energy Research Institute is pleased to release a report titled “LNG Liquefaction for the Asia-Pacific Market: Canada’s Place in the Global Game”. The conclusion of the study indicates that Canada’s West Coast Liquefied Natural Gas (LNG) project proposals are cost competitive internationally.
The study assesses the supply and demand balance for LNG in the Asia-Pacific region. The demand for natural gas in growing Asian economies can be provided from regions around the world, Canada being one of them. Cost competitiveness is crucial if new liquefaction projects are to be built. Investors must consider the capital cost of the projects, accessibility of the natural gas resource and the transportation costs from the liquefaction plant to the regasification facility. When all these factors are considered, Canada’s West Coast project proposals are in line with the normal costs experienced globally, and lower than the Sabine Pass facility located on the US Gulf Coast.
For a generic LNG project proposal on the British Columbia coast, the study found:
1. Capital costs of approximately $865/tonne of capacity.
2. Delivered cost to Japan of approximately $11.20 per million cubic feet of natural gas.
3. BC LNG projects are viable in the Japanese market at their landed oil index price of $70/barrel.