Newsletter: North American LNG output to double. And more news. . . .

Our newsletter: 16 January 2025

Aerial photo: LNG Canada plant

North American LNG to double by 2028

Liquefied natural gas production in North America will double between 2024 and 2028, if all new LNG projects planned in the U.S., Mexico and B.C. go ahead, Evaluate Energy forecasts.

The energy business intelligence group notes in a new report that, of 10 LNG projects in North America now under construction, three are in B.C., two in Mexico and five in the U.S.

Another 18 are in the pre-FID (final investment decision), with sanctioning decisions expected in 2025. Four of those are in B.C.

That bodes well for natural gas producers in Canada and the U.S.

“These new projects will create a significant demand pull for natural gas,” the Evaluate Energy report predicts.

Photo: LNG carrier at terminal 

 World outlook for LNG: More!

For this year, the International Energy Agency says global gas demand could reach 4,293 billion cubic metres, nearly 30% more than in 2024.

And the U.S. Energy Information Administration: “We expect LNG exports to increase by 15% in 2025, reaching almost 14 Bcf/d (14 billion cubic feet a day) as export capacity expands.”

And down the road:

  • Shell estimates global demand for LNG will rise by more than 50% by 2040, as industrial coal-to-gas switching gathers pace in China and South Asian and South-east Asian countries use more LNG to support their economic growth.
  • The Gas Exporting Countries Forum expects LNG demand to rise some 54% by 2050, with Asia Pacific and Europe collectively accounting for 89% of all LNG imports.
  • TC Energy expects LNG exports to triple by 2035, led by a doubling of exports from the US and supported by Canada’s new export volumes.

Read our blog: https://ow.ly/lbsG50UEVVB

Graphic: Canada supplies natural gas to US

Messages to Donald Trump

With Donald Trump’s inauguration as U.S. president coming on Monday (Jan. 20),  with his promise of a 25% tariff on Canadian natural gas and oil, the graphic above sparked this:

A question for the U.S.: You depend on Canada for 99.5% of your natural-gas imports. Now, why would you want to put a 25% tariff on it, and increase your costs by 25%?”

And more messages:

Photo: FN Power solar project

Indigenous energy news

 ALSO IN THE NEWS

  •  BC Premier David Eby backs natural resources — ‘they need to be developed’ — and hails the Nisga’a Nation’s Ksi Lisims LNG project, and the Haisla Nation’s Cedar LNG project: Video: https://ow.ly/AzIk50UGS1f
  • Premier Eby also calls for expanding energy production and faster reviews for natural-gas projects as B.C. and Canada face threat of U.S. tariffs: https://ow.ly/NQIu50UFI2v
  • Geoff Russ: The PRGT gas pipeline to the Ksi Lisims LNG project is Premier Eby’s test on energy policy: https://ow.ly/cqpf50UCwWk
  • The BC Environmental Assessment Office has opened a public-comment period on FortisBC’s proposed Tilbury Phase 2 LNG expansion project in Delta: https://ow.ly/QhEE50UG1I0
  • The Indigenous Resource Network says Ottawa’s draft oil/gas emissions-cap regulations ‘would disproportionately harm Indigenous workers and hinder growth in Indigenous LNG projects. https://ow.ly/ZfW750UCyxZ
  • Glenfarne Group is the U.S. firm working with the Alaska government on a gas pipeline and LNG project that would compete with BC LNG: https://ow.ly/n9hn50UCOxw

EVENTS

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