Quote:
Originally Posted by 1991 Canadian
Cost is everything.
For the record, I likely agree with your frustrations and I told you so's for Canada's west coast LNG mismanagement. The Asian LNG/natural gas market has been lucrative for a long time.
Canada's west coast LNG export delays have been a huge missed opportunity. Canada's East Coast LNG is not economically competitive without Canadian or German taxpayer subsidies.
This July 2018 report on the economic viability and hurdles for Canada LNG development does a better job breaking this down than I ever could.
https://ceri.ca/assets/files/Study_172_Full_Report.pdf
East Coast Canada LNG to Europe Estimate (July 2018): $11.17 /mmbtu
Russian Natural Gas July 2018: $7.62 / mmbtu
Germany uses 80.5 mmbtu/household of natural gas for heating/electricity. So if Germany wanted to be supplied with Canadian LNG, it would cost
an extra $285 per year in heating/electricity costs per family. It is not an insurmountable amount, but this cost has to be paid by someone. |
You make it sound like the likelihood of profit should drive companies on whether they should make an investment to ship LNG to Europe. That clearly flies in the face of Trudeau is an idiot, so that theory that private companies should expect to make a profit before they make large investments should be rejected.