Canada must invest $50 billion to stay in LNG race: report

Delay in building “significant” infrastructure a boon to competitors

By Rebecca Penty, Calgary Herald May 10, 2012

CALGARY — Canada must speed development of liquefied natural gas export projects to compete with emerging international players also vying to supply growing Asian economies, Ernst & Young argues in a new report that puts the tab for infrastructure needed over the next decade at $50 billion.

Low natural gas prices across North America are forecast for years to come, amounting to an erosion of Canada’s primary market south of the border, which means moving quickly on gas exports across the Pacific is critical, said Lance Mortlock, senior manager in the consultancy’s oil and gas advisory practice.

“We really don’t think that Canada has a choice here,” Mortlock said ahead of Thursday’s release of the report on Canada’s place in the global LNG industry.

“The opportunity window will be open for a finite period of time,” he said. “Certain companies are asking the question, ‘Canada has these resources, can they get those resources to the Asian market and can they do it quickly?”

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