MP Doubts All Five Canada LNG Projects will Happen

MP Nathan Cullen said his support for the projects depends on their specifics

It is unlikely that all five liquefied natural gas (LNG) terminals proposed in western Canada will be built, according to MP Nathan Cullen, who represents the area in the federal government, Canadian news outlet The Northern View reports.

"If you talk to people in the industry, they feel there is room for two or three terminals to be built," he said.

Cullen said his support for LNG exporting from the area depends on the specifics of individual projects as well as the collective impact of multiple projects moving forward at once.

"There's isn't a blanket statement for something like LNG," he said.

"If you say you're for all of them, would you allow 10 or 15 projects to come into the region? No.

"You have to look at where the energy is coming from and the capacity of the area to handle it."

Of the five projects, three planned for Kitimat have received LNG export licenses from the provincial government, while two in Prince Rupert are in more preliminary stages.

"If you have the papers and are more advanced in the project you are in a better position than those that don't," Cullen said.

Greg Kist, vice-president of marketing, government and corporate communications for Pacific Northwest LNG, which is developing one of the Prince Rupert projects on Lelu Island, said international supply and demand will also play a role in how many projects move forward.

"I think it is really a function of how the international markets grow," he said.

"Growth means more natural gas will be needed, and some of that can be filled domestically Whether the rest is satisfied by Australia, Quatar or Canada comes down to a question of economics."

An announcement late last year that Chevron Corp., a company seen to have global LNG expertise, would acquire a 50 percent interest in the Kitimat LNG project boosted that terminal's chances of moving forward, according to some observers.

Earlier this month, an industry group said it is seeking tax breaks to help the planned projects compete internationally.