Canada’s LNG Dreams Fade as Blockades Add New Costs to Industry - Bloomberg

Canada’s LNG Dreams Fade as Blockades Add New Costs to Industry - Bloomberg:

Hopes that Canada could turn into a gas export powerhouse seem to be waning fast. 


The current climate for energy investments in the country and the global market for liquefied natural gas are a far cry from October 2018, when a Royal Dutch Shell Plc-led group announced plans to build a massive LNG terminal on British Columbia’s coast and Prime Minister Justin Trudeau hailed the project as “a vote of confidence” in Canada. 

The latest sign of disenchantment came this week as a C$9 billion ($6.7 billion) LNG project in Quebec lost a large potential investor, which the Canadian Broadcasting Corp. identified as Warren Buffett’s Berkshire Hathaway Inc. That follows announcements last year that Chevron Corp. is planning to sell its 50% stake in an LNG project in British Columbia, and its partner in the venture is seeking to trim its stake as well.

While LNG projects across the globe grapple with the outlook for an oversupplied market in the coming years, growing environmentalist opposition is adding insult to injury in Canada. An indigenous protest against a pipeline that will supply Shell’s LNG project not only delayed construction of the conduit but also spiraled into nationwide blockades of key economic infrastructure that have hampered the country’s economy.