January 11, 2024
Shipping costs are a large component of the delivered price of LNG. The longer the voyage, the higher the transportation costs. Australia and Alaska (2030) have the shortest trips at 7 and 8 days respectively to Asia. Canada to Asia enjoys a much shorter trip (11 days) than the US or Russia. US and Russian shipments using either the Panama or Suez canals incur additional costs. Canada’s east coast would also enjoy an advantage in transport to Europe compared to US Gulf Coast facilities.
East Coast Canada projects have been either mothballed or converted to produce other product(s). The Pieredae project has been shelved due to a lack of pipeline access to Canadian and US supply basins. Repsol’s proposed Canaport LNG liquefaction Project has also been cancelled. The proposed Bear Head LNG facility site is now being advanced to produce green hydrogen and ammonia. Advancing Canadian east coast LNG Projects will require a policy shift to build pipeline capacity connecting growing US and / or Canadian shale gas supply.