This is why Staghorn PPY will $3. JMHO. “Looking at Kitimat, … the project may be stalling,” he said. “My understanding is that the site presents some disadvantages and it may require customized equipment, it will take longer to go in and out of the terminals compared to other projects, and, like other B.C. projects, it needs … significant and expensive pipeline infrastructure to be constructed.”
Kitimat was the first Canadian project to receive National Energy Board export approval and it already has an environmental assessment from the B.C. government.
“But despite that, they have not been able to announce any long-term agreement with Asian buyers, unlike Pacific NorthWest LNG and LNG Canada,” Diaz noted. “Part of the reason is the intention of maintaining the oil link in the contracts while Asian buyers are looking for gas-linked agreements.
“They are facing competition not only from these and other Canadian projects but from U.S. [Gulf Coast] projects, Jordan Cove and Oregon LNG on the West Coast and Australian projects. And with many Australian projects already under construction and the majority of the proposed brownfield U.S. projects in the Gulf of Mexico having announced buyers for most of their proposed capacity, the remaining available share of the premium Asian market is decreasing and the windows of opportunity … for Canadian projects is shrinking."