Enbridge enters LNG race

Trying to work out a form line on the list of probable/possible runners and riders in the great LNG chase has been complicated enough to date.

Trying to work out a form line on the list of probable/possible runners and riders in the great LNG chase has been complicated enough to date.

But last week’s apparent entry of a dark horse has made it even more so.

Each year Enbridge holds a meeting for analysts called – what else? – Enbridge Day. This year’s event was held October 4 in Toronto and webcast for those of us living outside the centre of the universe.

During his presentation Stephen Wuori, president of liquids pipelines said “We also see in the longer term, beyond 2015, the need for LNG export from Northeast BC,”, adding that the price differential between North American and Asian prices “is just too large to ignore”.

Later Al Monaco, president of gas pipelines took it a step further, saying, “We’d be interested in LNG export…right all the way to the LNG export facility.”

And revealed Enbridge was already in discussions with natural gas producers on the subject of LNG exports.

Speaking to Reuters following the meeting, Enbridge CEO Pat Daniel said the company the company would prefer to supply natural gas to a Kitimat liquefied natural gas plant in British Columbia over any other export project in western Canada.

And Enbridge is interested in joining one of two proposed Canadian LNG projects to ship natural gas to Asia.

Well, that one is clearly not the BC LNG Co-operative since it will be getting its gas via the existing Pacific Northern Gas pipeline.

Which only leaves the KM LNG project – assuming “proposed” means only those which have applied for a natural gas export licence.

And that makes perfect sense in that KM LNG partners Apache/EOG/Encana are natural gas producers, not pipeline companies.

So why not get Enbridge to build and operate the Pacific Trail Pipeline from Summit Lake tot he Kitimat LNG plant?

There is a slight wrinkle in that PNG has an agreement with KM LNG that it will be paid to operate and maintain the line for the first seven years.

But given PNG happily sold its 50 per cent share in the PTP line earlier this year, I am sure its shareholders would be equally happy to be bought out of that operational agreement in exchange for a dividend boost.

We certainly live in interesting times.


Malcolm Baxter



Just Posted

Kitimat pool and arena evacuated due to wrong mix of chemicals

Hazmat crew on its way to determine how dangerous scene is at the Sam Lindsay Aquatic Centre

New Coast Guard radar boosts marine traffic monitoring off B.C. coast

Six radar installations set up for Georgia Strait to Queen Charlotte Strait to Prince Rupert

B.C. Legions in need of young members to continue aiding veterans into the future

Lest we forget what thousands of men and women did to fight for Canada’s freedoms – but without new membership, many Legion chapters face dwindling numbers

Kitimat commits itself to the global fight against polio

Mayor Phil Germuth signs a proclamation

$2 million landfill capping complete

The purpose is to minimize potential leaching of contaminants from the site.

Winter weather hits parts of Canada

As some parts of the country brace for cold, parts of B.C. remain warmer than 10 C

Canada’s health system commendable overall but barriers to care remain: UN

The United Nations says Canada’s health care system is “commendable” overall but vulnerable groups still face barriers to quality care.

Unique technology gives children with special needs more independent play

UVic’s CanAssist refined seven prototypes aided by $1.5M government contribution

Kelly Ellard’s boyfriend has statutory release revoked

Darwin Duane Dorozan had several parole infractions that found him ‘unmanageable’

Doctor’s note shouldn’t be required to prove you’re sick: poll

70% of Canadians oppose allowing employers to make you get a sick note

German-born B.C. man warns against a ‘yes’ vote on proportional representation

Agassiz realtor Freddy Marks says PR in his home country shows party elites can never be voted out

Fashion Fridays: 5 coats you need this winter!

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

Saskatchewan college honours memory of Humboldt Broncos coach

Darcy Haugan wore jersey No. 22 when he was a star player with the Briercrest College Clippers

Liberals to act quickly if Saturday midnight deal deadline breached: source

Oh Friday, Canadian Union of Postal Workers said it would not bring the latest offers to a vote of its members

Most Read