"NEW YORK/CALGARY (Reuters) - Energy companies announced two multibillion-dollar North American liquefied natural gas export plants on Tuesday, adding to a lengthening list of projects aimed at shipping surplus gas overseas to take advantage of more lucrative markets."
"The two projects add to 10 others in various stages of development in North America over the last few years as a huge supply surge from shale deposits floods the market and pushes prices far below levels in Europe and Asia."
"But Canada, whose vast gas reserves in British Columbia are stranded without demand from the amply-supplied United States, is racing to find needy buyers in Asia willing to pay dearly for the fuel. British Columbia Premier Christy Clark has identified LNG exports as a major economic opportunity and job creator in Canada's westernmost province.
"Canada is a lot more open to exports than the United States. The U.S. market is bigger and there is more potential for that gas to serve domestic needs - more than in British Columbia," said John Malone, analyst at Global Hunter Securities in New York.
Shell, along with PetroChina, South Korea's Kogas and Mitsubishi Corp, will study a liquefaction plant at Kitimat, British Columbia, that would initially include two units with capacity of 6 million metric tons (1 metric ton = 1.1023 tons) annually each, or a total of 2 billion cubic feet a day
The savings may narrow some but natural gas is a byproduct of even oil drilling and we have a lot and we cannot even export it for a couple of years until the export terminals are completed. I think you make much ado about nothing. Also the economics of LNG is most likely much more favorable for natural gas trucks. In addition natural gas burns cleaner and the trucks do not need all the pollution control equipment. The engines on natural gas will last longer and require less maintenance.
I'm happy to agree with the prospect. I'm still not convinced CLNE is the right NG investment - but I'm hopeful of the concept. With over a quarter century in wind, I've earned my jaded stripes due to insanity in DC and a complete lack of an energy policy that isn't focused on military driven nuke or oil interests that control coal. TBoone is facing an uphill climb pitching a very common sense approach to a smart use of NG in front of a bought and paid for bunch of shills in DC. Tough haul. I almost got in some months back at ?? $15ish. Glad I didn't - for now.
You do realize that rising NG prices is a big negative for CLNE. CLNE profits decline as the price of NG rises toward the price of Gasoline/Diesel.
In the last few months the price of Gasoline Diesel has declined about 33% while the price of NG has risen about 50% from its low. Both negative for CLNE.
CLNE profits increase as NG prices fall while Gasoline prices rise, just the opposite of what has happened the last few months. My post contains the reasons I feel the negatives for CLNE has only just begun.
ALL JUST MY INFERENCES. DO YOUR OWN RESEARCH. I COULD BE WRONG!!!