LNG

Oil prices may be key for Canadian LNG FIDs

Rising oil prices will be beneficial for Canadian LNG projects because of the boost they will provide to NGL prices, but upstream costs could still be pushed up by domestic factors Rising oil prices will be beneficial for Canadian LNG projects because of the boost they will provide to NGL prices, but upstream costs could still be pushed up by domestic factors.
By Peter Stewart 17 January 2019 0 33840
The LNG Canada information centre. (LNG Canada)

The key issue: FIDs are expected this year on major LNG projects in Russia, Mozambique, Canada, the Middle East and elsewhere. Cost is expected to be key in deciding which will proceed, with higher oil prices potentially important for the relative competitiveness of US and Canadian projects.

Interfax analysis: With Brent crude futures having recovered to nearly $60 per barrel and gains to around $70/bbl expected in the coming year, oil prices could be a factor in deciding whether Canada realises its ambitions of becoming...