Final decision on LNG Canada expected this week
Rendering of the proposed LNG Canada facility in the Kitimat area of northwest B.C. (LNG Canada)
Producers say a positive final investment decision for the Kitimat-based LNG Canada project could eventually encourage others to follow suit, creating the demand needed to soak up Western Canada's glut of natural gas.
Reports have suggested the estimated 40-billion-dollar gas liquefaction plant and pipeline that was delayed in 2016 could be officially sanctioned as early as next week.
Steve Laut, executive vice chairman of Canadian Natural Resources in Calgary, says the projects would eventually provide a market for gas companies that are now discouraged from increasing production by low prices linked to fierce U-S competition and Canadian pipeline capacity shortfalls.
He says if one plant gets through the process, it will give confidence to other proponents too.