The current natural gas story in Canada is mixed: short term pain from exceptionally low prices (the AECO price benchmark averaged just $0.82/MMBtu in August), but solid medium-term prospects.

2024 is the year of market access for Alberta crude oil with TMX coming on line. But it’s on the natural gas side too, as the new Coastal GasLink pipeline feeds into LNG Canada’s natural gas export facility in Kitimat.

Canada is the fifth largest natural gas producer in the world, but does not yet export liquefied natural gas (LNG) to the global market. That will change next year with the completion of the first phase of the LNG Canada facility.

Another major project has been added to the list this year. Cedar LNG announced in late June that it reached a final investment decision and will proceed with the construction of a US$3.4 billion floating LNG facility in the traditional territory of the Haisla Nation near Kitimat.

Cedar LNG is majority-owned by the Haisla Nation, in partnership with Pembina Pipeline Corp., with 50.1% and 49.9% ownership, respectively.

The new LNG export capacity will support Alberta’s natural gas producers with an expected improvement in prices due to the greater market access for western Canadian gas.

In the latest ATB Capital Markets Energy Sector Survey, west coast LNG and crude pipelines ranked as the top growth opportunities for the sector.

Answer to the previous trivia question: Canada’s athletes won 29 medals at the Paris 2024 Paralympic Games.

Today’s trivia question: How cold does natural gas have to be to turn into a liquid?