Economics of Shipping Canadian, Gulf LNG to Asia Workable, Risky

摘要

With Cheniere this month joining Apache and EOG's Kitimat project in Western Canada as a potential exporter of North American LNG, market players and analysts remain divided over the economics of LNG flows to Asia. It's not that producers wouldn't make money, but would it be more money than they could make selling the gas at home? Kitimat faces higher greenfield costs, but has two important advantages: shorter distances to Asian markets and a lower competing gas price at home, with Western Canadian Aeco prices recently running more than an 800/MMB-tu discount to Henry Hub.