Canada looks set to capture the Asian appetite for LNG before the U.S. Canada has a favorable regulatory environment for exporting energy and has already approved 3 LNG facilities for export compared to just 1 in the U.S. The first facility to export to Asia from Canada looks to be in operation mid-2015, 8 months before Cheniere Energy's (LNG) Sabine Pass facility in Louisiana.
Chevron Corp. is focusing all of its efforts on exporting LNG in Canada. Besides a friendlier regulatory environment, western Canada is closer to Asia and will cut down on shipping costs. Chevron in December bought 50 percent of the Kitimat LNG project. The other half of the Kitimat LNG facility is owned by Apache Corporation (APA).
The third LNG facility in Canada is backed by Royal Dutch Shell in British Columbia. These 3 facilities will have the capacity to export 4.66 billion cubic feet a day once they're operational.
The Japanese government is stepping in with $10 billion in loan guarantees to Japanese companies investing in Canadian LNG projects. By providing loans the hope for Japan is to speed up Canadian projects. By providing capital Japan hopes to secure more favorable terms when negotiating contract prices for LNG. Japanese companies that are already invested in Canadian LNG projects and likely to take advantage of the Japanese government's offer include Mitsubishi, Japex and Inpex.