In February 2015, Canada counted 22 LNG liquefaction plant projects – of which 17 are located in British Columbia – representing a total design capacity of 325 mmtpa. Canada has the potential to become a major LNG exporter but no project has received Final Investment Decision (FID) so far. Competition with US brownfield projects with innovative business models have limited the commercial appeal of many Canadian projects relying on oil indexation. More recently, plummeting oil prices have put into question their profitability and lead to several postponements of FID reviews. CEDIGAZ’s new report Waiting for the Next Train? An Assessment of the Emerging LNG Industry in Canada discusses the potential for Canada to export LNG, looking at the initial enthusiasm and wide support by public authorities and local communities but also at the economic challenges and commercial issues that are slowing the progress of these projects.
LNG Markets - Page 10
CEDIGAZ LNG Service
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The LNG Service provides the LNG analyst with all the data needed to follow the developments of the fast moving LNG market. The LNG Service includes comprehensive, quarterly updated, worldwide databases on liquefaction projects, regasification projects, long-term gas supply contracts and LNG trade between countries, as well as monthly bulletins on traded volumes and prices. The company reports allow for easy assessment and benchmarking of the main players in the market and the CEDIGAZ LNG Outlook provides CEDIGAZ’s views on medium and long-term LNG market perspectives.
THE DATABASES
Liquefaction plants: CEDIGAZ has identified 132 projects (not including project closed, suspended or canceled) representing over 1,300 mtpa of potential liquefaction capacity, of which 34 operating projects (287.37 mtpa), 17 projects under construction – plus one expansion project – with expected start-up dates from now to 2018 (133 mtpa) and 81 projects – plus 14 expansion projects – at different stages of planning (880 mtpa).
>>> Special features: quarterly updated,train level details, a dedicated spreadsheet allows the user to follow the authorization process for US and Canadian plants, historical production by plant.
CEDIGAZ’s Monthly LNG Trade Bulletin of March 2015
Asian LNG prices decrease start to show
In January 2015, LNG imports in Japan, South Korea and China grew by 0.8% compared to December 2014. Imports reached 14.7 million tons which is though 3.9% lower than January 2014 levels. January showed the first impacts of decreasing oil prices on LNG prices, as oil-linked contracts usually include a six-month lag. In Japan, the average import price decreased to its lowest point since September 2013 at $15.15/mmbtu in January, while it averaged $16.14/mmbtu in 2014. South Korean price dropped sharply, from $16.07/mmbtu in December (and $16.31/mmbtu on average in 2014) to $14.27/mmbtu in January.