{"id":6516,"date":"2021-01-14T21:23:59","date_gmt":"2021-01-14T21:23:59","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2021\/01\/14\/lng-prices-skyrocket-but-fresh-delays-mean-canadian-projects-will-miss-the-boom\/"},"modified":"2021-01-25T07:46:07","modified_gmt":"2021-01-25T07:46:07","slug":"lng-prices-skyrocket-but-fresh-delays-mean-canadian-projects-will-miss-the-boom","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2021\/01\/14\/lng-prices-skyrocket-but-fresh-delays-mean-canadian-projects-will-miss-the-boom\/","title":{"rendered":"LNG prices skyrocket, but fresh delays mean Canadian projects will miss the boom"},"content":{"rendered":"
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Tonken said that between U.S. domestic natural gas demand, U.S. LNG exports and U.S. natural gas exports to Mexico, natural gas demand south of the Canadian border adds up to about 97 billion cubic feet of demand per day.<\/p>\n

\u201cSupply is currently between 88 bcfd and 90 bcfd. So we\u2019re short gas,\u201d he said.<\/p>\n

Even if North American natural gas prices are looking up, producers are still missing out on global prices that are as much as 15 times higher than the full strip for NYMEX gas this year.<\/p>\n

Alfred Sorensen, president and CEO of Calgary-based Pieridae Energy Ltd., has been trying to secure financing for an LNG terminal called Goldboro in Nova Scotia and described 2020 as \u201ca perfect storm,\u201d that has frustrated his company\u2019s capital-raising efforts.<\/p>\n

\u201cWe had a scenario where gas built up coming into winter, there was no winter in Europe, then COVID-19 came and gas got destroyed,\u201d Sorensen said, adding that he hasn\u2019t been able to travel to meet potential investors in the project through 2020 but is still hopeful he\u2019ll be able to engage investors this year.<\/p>\n

\u201cTo do the kind of deals we\u2019re going to do, we\u2019re going to have to see how we can go to places. I don\u2019t think that\u2019s going to occur for the next three or four months,\u201d Sorensen said, adding he\u2019s looking to raise $1 billion in the first half of this year.<\/p>\n

Sorensen said the company\u2019s new engineering and construction contractor, Virginia-based Bechtel Corp., is due to send the company a preliminary all-in cost estimate for the project by the end of March. The company hopes to make a decision on pre-construction work by the end of June.<\/p>\n

\u201cIf we get to the finish line, there\u2019ll be a very big bottle of champagne,\u201d Sorensen said.<\/p>\n

\u2022 Email: gmorgan@nationalpost.com<\/a> | Twitter: geoffreymorgan<\/a><\/em><\/p>\n<\/div>\n