With the emergence of shale gas in the U.S. (Canada’s only customer for export), profits in Canada’s natural gas industry have decreased by half but Canada may have found a solution to this problem. Canada has decided for the first time to ship natural gas to buyers in Asia, this $5 billion project started this summer where more than 40,000 cubic meters of hard rock have been excavated at Bish Cove on the north coast of British Columbia. Industry officials believe that Canada has an advantage over its competitors (such as Australia) because shipping times from Kitimat to buyers in Japan, southern Korean and northern China are shorter which will save transportation costs. The Kitimat LNG project is waiting to receive a permit from the National Energy Board. If the Nation Energy Board gives this project the green light, by the end of this decade, 3 billion cubic feet a day of gas could flow through Kitimat.
Exporting to Asia is a great way for Canada to expand its natural gas industry. However this gas export plan will increase Canada’s greenhouse gas emissions and could cause higher energy prices for residential and industrial customers.