RE:RE:Canadian LNG is a jewel' says Enbridge CEO I keep hearing tax payer's assistance, but why would it be needed for a floating lng 0.4 - 0.8 bcf/d
volume when the pipeline to the shore already exists?
If Enbridge thinks this is such a Jewel (which is for them - collecting fees on someone else's
investment), why would they not just do it themselves? they need growth projects big enough to
move the needle for them. they could pay Pieridae to go away a couple of hundreds of millions.
pieridae could surely use that money... the proposed floating lng project needs no government
assistance other than to shield them from crazy taxes (you can go ahead and call that assistance,
but being reasonable is not assistance). the gas volumes from the northeast of the u.s is about to
surpass the pipeline capacity out of the area. that is if mvp actually goes into service. if its not,
it will be interesting to see how the u.s increases ng production beyond its lng capacity increases.
In summary: the gas is available, the pipeline to NS exists and the government there needs the
utilization to go up, so the cost of operations per unit of gas will go down.
The economics of lng is pretty much $2.5 per mcf - $3 per mcf. the only thing that is needed for a
$2B investment per 0.35 - 0.4bcf/d is a guaranteed customer at a certain fixed formula of pricing.
Germany? who knows. the point is that the facts do not always agree with your assertions.