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Markets & Forecasts

Canadian NGLs boom as LNG faces headwinds

Canada is boosting its output of NGLs as domestic and export demand surges, but the country’s proposed LNG projects are seeing slow progress despite FID being taken for the LNG Canada development Canada is boosting its output of NGLs as domestic and export demand surges, but the country’s proposed LNG projects are seeing slow progress despite FID being taken for the LNG Canada development.
By Peter Stewart 15 August 2019 Americas / LNG 0 34485
Ridley Island (pictured) is the first marine export facility for propane in western Canada. (AltaGas)

Although most of Canada’s proposed LNG export projects are on hold for now, production and exports of NGLs have surged in 2019 as output has ramped up from the giant Montney and Duvernay basins. More importantly, improving domestic pipeline infrastructure could result in Canada becoming a key supplier of NGLs and LNG in the longer term, boosting the country’s competitiveness in the global market.

NGLs comprise condensates, propane and butane – which in Canada are exported by pipeline, rail and truck as well as being used...