New natural gas terminal adds to the oversupply of gas.

The WSJ reports that “The amount of natural gas available for production in the U.S. has soared 58% in the past four years, driven by a drilling boom and the discovery of huge new gas fields in Texas, Louisiana and Pennsylvania…”

New Brunswick’s Canaport LNG is about to add to the glut of natural gas.

New Brunswick’s Canaport LNG terminal is set to begin operations next week, taking its first natural gas shipment, but analysts are already questioning the economics of the joint venture between Irving Oil Ltd. and Spain’s Repsol YPF SA.

The Canaport plant in Saint John is the first onshore liquid natural gas terminal to be built in eastern North America in 31 years and has beat out a host of competitors to supply the lucrative U.S. Northeast market, which is underserved by pipelines from the west.

The plant will supply one billion cubic feet a day of natural gas to markets in Atlantic Canada and the U.S. Northeast, an amount equal to roughly one-third of New England’s current gas demand….

Access to Repsol’s Trinidad gas supply will allow Canaport to be a relatively low-cost supplier to U.S. markets.

But it will face fierce competition from Qatar, which will receive huge returns from stripping out the liquids from its gas and can then afford to sell the LNG cheaply. Source:


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