2 Marcellus LNG Export Projects Get Canadian Approval

Two Canadian LNG export projects have made significant progress–but both are still far away from actually getting built. A year ago MDN supplied you with a list of five potential Canadian LNG export projects along the East Coast of Canada (see List of LNG Export Projects for Marcellus/Utica Shale Gas). Two of those projects–Bear Head LNG and Goldboro LNG, both located in Nova Scotia–have received a green light from the U.S. Dept. of Energy (see 2nd Canadian LNG Plant Gets U.S. Approval to Export Marcellus Gas). Both projects received a green light last week from the Canadian National Energy Board (see the article below). The gazillion dollar question is: Where will the natural gas come from that gets exported via these facilities? We’ve long hoped that Marcellus Shale gas would be some of that gas–we have way more than we can use here at home. But at the recent RBN Energy “State of the Energy Markets” conference in New York City, RBN’s Rusty Braziel said virtually none of the gas going to New England via the proposed Kinder Morgan Northeast Energy Direct pipeline nor the Spectra Energy Access Northeast pipeline would be exported. Frankly, if Marcellus gas doesn’t get piped to Canada, we think there’s virtually no chance these LNG projects will get built. Our sentiments were recently echoed by Moody’s Investors Services (see Moody’s: “Vast Majority” of LNG Export Projects Will be Canceled). So, read the following article, but do so with your head swiveling around as ours is. Will Marcellus gas get exported? Will the Maritimes & Northeast pipeline get FERC permission to reverse its flow and send gas from the U.S. into Canada? Will Kinder and Spectra actually build their pipelines to New England? A lot of unanswered questions when you consider whether or not Canada will actually build any of these LNG projects…

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