I believe it to be related to costs as TLM has stated. However, not entirely drilling cost or price of NG. This is a young industry and a number of items will/are being negotiated/reviewed. One aspect that needs to be addressed is negotiations with the Quebec government on drilling permit costs, royalties, etc. The government will back off on these if they see that the industry is slowing down drilling. See Alberta as an example. As for demand for natural gas on the east coast and future price of gas. Some are so confident that both will increase they have started shipping LNG to Canada as I type. One would think we can extract NG in Quebec cheaper than shipping it in from the persian gulf.
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Doha - Qatar, 09 October 2010: Today QatargasQatargas and RepsolRepsol
Energy Canada Ltd. signed a new sales and purchase agreement under which QatargasQatargas will supply liquefied natural gas (LNG) to RepsolRepsol
Energy Canada Ltd.
The proposed annual LNG sale toCanada will involve Q-Max deliveries and will come from the Qatargas 3Company. It will be delivered at the Canaport™ LNG facility in SaintJohn, New Brunswick (Canaport LNG). Initially, the supply will be forthree years commencing with the first LNG delivery from Qatargas 3project, Train 6.
Commenting on the deal, Sheikh Khalid bin Khalifa Al-Thani, Chief Executive Officer of QatargasQatargas, said:
"This agreement comes at a significant time for QatargasQatargasas we prepare for the grand celebration of the state of Qatar's 77 mtpaof LNG production capacity, under the wise leadership of His Highnessthe Emir Sheikh Hamad Bin Khalifa Al-Thani and guidance and direction ofHis Excellency Abdullah Bin Hamad Al-Attiyah, Deputy Premier andMinister of Energy and Industry.
The deal further adds value asit will allow us to have access to the premium North East US market andCanada for the first time."
Benjamin Palomo, Executive Director of LNG for RepsolRepsol
, said:
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"The new LNG supply from Qatar strengthens RepsolRepsol
's position in the Canadian and Northeast US markets as a reliable, diversified, flexible supplier of natural gas."
QatargasQatargas'state-of-the art Q-Max LNG carriers are capable of delivering 266,000cubic meters of LNG during a single voyage. They are the biggest LNGcarriers in the world. The company's fleet of Q-Flex and Q-Max carriersrepresents a step-change in LNG shipping technology.
-Ends-
Notes to Editor
About Qatargas
QatargasQatargaspioneered the liquefied natural gas (LNG) industry in Qatar. Today, theCompany is realizing its vision to deliver LNG to customers around theglobe from its world-class facilities in Qatar.
QatargasQatargaswas established in 1984 and since that time the Company hasprogressively established itself as a leading player in the LNGindustry.
Today QatargasQatargas is exporting 26 mtpa of LNG from five LNG trains. QatargasQatargas' customers are now spread throughout the world including Japan, Spain, the United Kingdom, Canada and China.
Currently, the Company is undergoing a period of rapid expansion, which when completed at the end of this year will see QatargasQatargas exporting 42 mtpa of LNG to markets in Europe, Asia and North America.
About Repsol
RepsolRepsol
is a fully integrated oil and gas company, operating in over 30 countries. RepsolRepsol
is one of the ten largest private oil companies in the world and one of the world's largest LNG players. RepsolRepsol
is the managing general partner in Canaport™ LNG Limited Partnership, the entity that owns and operates Canaport LNG. RepsolRepsol
has contracted for 100% of the capacity in Canaport LNG.
Contact details
Lynda James
lyjames@qatargas.com.qa
Ph +974 77 99 66 35