Market Chatter: Canada Seen Beating U.S. in US$150 Bln Asia LNG Race

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"Canada is pulling ahead of the U.S. in a contest to be the first exporter of liquefied natural gas from the North American shale bonanza to Asia's US$150 billion LNG market," Bloomberg reported.

It said: "An LNG terminal being built at a cove north of Vancouver financed by a Houston private-equity firm is scheduled to begin shipping the fuel across the Pacific Ocean in mid-2015, eight months before the first continental U.S. plant is slated to start. Canada's government has approved twice as much LNG export capacity as its southerly neighbor, evincing a friendlier attitude toward selling domestic gas to the highest bidder and positioning the nation as the go-to source of gas in North America for overseas buyers."

It added: "International energy giants from Exxon Mobil Corp ( XOM ). to Malaysia's Petroliam Nasional Bhd (PET) are considering terminal projects in western Canada to supply Asian utilities and factories that are paying more than four times the price of U.S. markets. Chevron Corp ( CVX ) said it's focusing all of its North American LNG efforts north of the U.S. border because of the more favorable regulatory climate and closer proximity to Asia, making exports more profitable for producers."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities
Referenced Symbols: CVX , XOM

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