“Longer term, we need to find a way to move our natural gas into a position where we can ship it and move it into, particularly countries like Japan, where the price of natural gas – through the LNG – is just far superior to what were are getting here in North America,” says Magnusson.
These comments come after hosting Industry Outlook 2015 at Fort St. John’s Pomeroy Hotel. Magnusson says those in attendance did have some innovative ideas to help get the LNG industry off the ground.
“Essentially what you would have is a very, very large ship instead of building an LNG plant,” explains Magnusson. “You would simply have one float in and convert that natural gas based on a tanker, that tanker would convert that natural gas into LNG, and then we can ship it [abroad].”
Magnusson says a potential downside to this method is capacity and cost-effectiveness.
The additional production coming out the U.S. is having an affect on development right across Canada, but here in northeast B.C., the diversity of our resources gives us a short-term advantage, according to Magnusson.
“We are benefiting in the North Peace area from the wet gas, and that would be of course the additional butane, the propane, and the methane, that we have additional to sell out of those wells.”
Magnusson does concede however that a reduction in value will still affect the northeast – which he predicts will continue into late 2016.
Magnusson says the North Peace is stuck in a “landlocked asset” if LNG development doesn’t begin shortly.
“Unless we are prepared to make significant investment, at some point and time [it] will be a depleted resource,” Magnusson concludes. “It will be a lost opportunity for the North Peace area that I’m not so sure we can get back.”
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