LNG a one way street and what that means.

The liquefaction of natural gas for export is completely different from the gasification of LNG after import.  Kitimat in British Columbia was selected for IMPORT of natural gas. A entirely different plant had to be designed when the plan was changed to make Kitimat an EXPORT port. This change in plans speaks volumes about the increase of natural gas reserves in North America.

LOS ANGELES, Jan. 15 — Galveston LNG Inc.’s subsidiary Kitimat LNG Inc. and Mitsubishi Corp. signed a heads of agreement for the Japanese firm to acquire terminal capacity and an equity stake in Kitimat LNG’s proposed LNG export terminal in British Columbia….

Reversing its earlier decision to import LNG to North America through a regasification terminal at Bish Cove, Kitimat LNG last September announced plans to develop an LNG export terminal on the Bish Cove site….

The firm changed its plans after noting significant changes in market forces. In particular, it said rising natural gas demand in Asia and recent increases in supply throughout North America—including the US, Canada’s traditional export market—had led to higher natural gas prices in Asia than in North America.

"The growing economies of the Pacific Rim and rapidly increasing demand for LNG make Asia a natural market for BC’s plentiful and expanding supplies of natural gas," said Rosemary Boulton, Kitimat LNG president.

Source.

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