IMHO It3 a great buy if you have a longer term outlook as Alberta Nat Gas futures point to much higher 100-200% higher gas prices ..
some 50% of it3 19-20,000boepd is Alberta Nat Gas production..
even in the short term Nat gas is predicted to head upwards some 70%+ from present C$1gj lows by OCT this year
next year average C$3.20gj predicted thanks to LNG exports starting... and this is still cheap where I live in the deep southern hemi we pay $4 to $20Gj depending on demands Austraila east coast at present is pricing around C$15Gj in their largest city in VIC ...
Canada produce on average 18BCF per day... short term LNG export pipeline will see 2BCF exported per day rising to 7-8 BCF end of the decade
Huge advanatges for western Canadian LNG exports to hungry asian markets much closer than USA east coast LNG terminals ...
late last year >>>>>
HOUSTON -- China and other countries in Asia are increasingly turning to liquefied natural gas as an alternative to coal for meeting power demands, leading to interest in the nascent LNG industry on Canada's Pacific coast.
While Canada has never exported LNG, the International Gas Union, and association of industry players, chose Vancouver -- the largest city in the west coast Canadian province of British Columbia -- to host the LNG2023 conference in July because of Canada's potential to become a major producer.
The conference was buzzing with energy as companies from Asia and the West held engaging talks at their respective booths. Members of Indigenous tribes attended the conference wearing traditional clothing.
"Canada's LNG can be the answer to the question of gas," after the war in Ukraine, said Timothy Egan, president of the Canadian Gas Association.
There were plans floated about a decade ago to build dozens of LNG plants in western Canada, but most never materialized. The energy project LNG Canada, led by Shell, is the only one that reached a final investment decision.
LNG Canada facilities are due to start operating in the mid-2020s, Shell says, and output is projected at 14 million tonnes a year for the first phase. There are plans to double output around 2030. Stakeholders are studying the costs and feasibility of the project.
"We are waiting to see what the joint venture comes up in terms of compelling investment case for phase two," Shell CEO Wael Sawan told reporters before the LNG2023 conference.
Japanese engineering group JGC Holdings seeks to land a contract to design and build the expanded facilities through a separate JV.
Along with Shell, an assortment of Asian companies have stakes in the LNG Canada JV, including Japanese trading house Mitsubishi Corp., PetroChina, South Korea's Kogas and Malaysian energy major Petronas.
Companies will sell the LNG to Asian utilities or consume it themselves. Some companies in the JV, such as Petronas, hold shale gas rights in western Canada, and plan to liquefy gas for export.
Asia is the home to the top three LNG importers in the world, Japan, China and South Korea, respectively. East Asia consumes half the world's LNG, according to European research company Rystad Energy.
Japan and South Korea import LNG from Russia's far east, but the war in Ukraine has forced them to look for North American LNG.
Southeast Asian nations such as Vietnam and the Philippines have begun to import LNG as they move away from coal. Southeast Asia's demand for LNG is on track to grow to 77 million tonnes in 2030, or quadruple the 2022 volume, putting the region on par with world leader Japan.
Despite Canada not exporting any LNG, the number of LNG facilities having reached investment decisions equates to a total capacity exceeding 40 million tonnes.
This could make Canada a larger LNG exporter than Russia, which was fourth in the world last year at 33 million tonnes.
Apart from LNG Canada, other projects are springing up in anticipation of Asian demand. The Woodfibre LNG project in British Columbia, led by Singapore's Pacific Energy, picked U.S. contractor McDermott to design and build the liquefaction plant.
The facility is to start operating in 2027 at an annual capacity of 2.1 million tonnes. BP will purchase most of the LNG to sell in Asia.
Canada's west coast enjoys the advantage of being geographically close to Asia, according to Dulles Wang, director at the British research firm Wood Mackenzie.
It takes roughly 20 days for LNG vessels to reach northeast Asia from the Gulf of Mexico via the Panama Canal. In contrast, the voyage from Canada would take only about eight days.
In addition, the Panama Canal is an energy chokepoint that is prone to congestion.
Explorers are developing offshore LNG plants in Canada as a solution for quickly ramping up export capacity. These offshore facilities are subject to less environmental regulations than onshore plants.