When Premier Christy Clark came out with her bold stance on LNG, many speculated how much annual revenue the project would bring.
Clark has clearly stated that the industry will be making $4.3 to $8.7 billion in government revenue each year by 2020.
B.C. Ferries has come out with plans to purchase three new vessels that it hopes will be powered by liquefied natural gas. Although this will involve higher initial capital costs, the overall life cycle costs will be lower.
As of mid-2013 about 138 billion cubic meters a year of LNG was under production, which will bring the total capacity to 500 billion cubic meters by 2018. About 86 billion cubic meters will be sold to Asia and 80 percent is contracted for the long-term.
B.C. Ferries’ interest in LNG says a lot about the demand for the product. We need the product at home as well.
With big-time players like Exxon Mobile, the world’s largest energy company, aboard the project to export LNG (a move that would produce one-third of Canada’s current daily production), it speaks wonders as to how profitable this project could be.