LNG breakthrough likely means higher bills
B.C.s long-awaited breakthrough on liquefied natural gas exports is being celebrated from Kitimat to Kimberley as the province finally appears to have broken through the protest wall to get a petroleum product shipped somewhere besides the United States.
Ill spare you the political sniping and credit-taking that surrounded investor approval of the $40 billion LNG Canada project, which as Prime Minister Justin Trudeau couldnt stop saying, is the largest private-sector investment in Canadian history.
Instead, here are some things you should know about LNG and B.C. natural gas.
First, how bad is the situation for one of B.C.s core resource industries without an export window?
The hydraulic fracturing refinements that produced a new shale oil and gas boom in North America created such a glut south of the border that the U.S. has converted LNG import terminals to export gas to Asia.
The U.S. has run laps around poor, confused Canada, while its misguided environmental foundations hire protesters to jam up everything Canada tries to do to end the United States monopoly on the North American market.
B.C. has some of the most productive shale gas basins in the world and these days they are not just giving it away for less than a buck a gigajoule occasionally theyre actually paying to ship it.
B.C.s daily spot gas price is determined at the AECO Hub, a storage facility in southern Alberta, and there have been times in the last couple of years when the price has been negative.
If you ....