By Jeremy van Loon - Jun 28, 2012 Driving global interest in Canada’s gas reserves is the difference in North American prices compared with those paid in Asia for the fuel, which is linked to the price of oil. Oil-linked prices averaged $16.66 per million British thermal units of gas in the first quarter while in New York gas futures averaged $2.50 per million Btu.
Petronas’s LNG project should be highly profitable and benefit from oil-linked prices, Anuar said yesterday.
Chinese consumption of the fuel has increased an average of about 16 percent annually from 2000 to 2010 and will continue expanding as much as 12 percent a year through 2020, according to Bloomberg New Energy Finance estimates.
Japan, the world’s largest LNG importer, is looking to buy more gas after idling its nuclear power plants following the March 2011 earthquake and the subsequent meltdown at the Fukushima Dai-Ichi nuclear power plant.
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TCF is a lot closer to that ever growing market and also to LNG plant that needs the supply!