2nd Canadian LNG Plant Gets U.S. Approval to Export Marcellus Gas

In May MDN told you that one of four proposed Canadian LNG (liquefied natural gas) export facilities that wants to export American shale gas received a green light from the U.S. Dept. of Energy to export our shale gas (see Canadian LNG Project to Export Marcellus Gas Gets DOE Approval). Good news. A second Canadian LNG export facility, Bear Head LNG in Nova Scotia, has just received the DOE’s official approval to export American shale gas. The shale gas they will export, if the plant gets built (still a big “if”), for both of the approved plants, would be Marcellus and Utica Shale natural gas. There are still many hurdles, including: (1) the Maritimes & Northeast pipeline has to get FERC permission to reverse its flow; (2) the gas has to get to the Maritimes & Northeast pipeline in the first place via new pipelines from either Kinder Morgan or Spectra Energy; and (3) the price of oil has to rise to make the whole thing economical, since LNG is so closely tied to the price of oil. Here’s the announcement from Bear Head LNG…

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