Repsol says Canaport LNG regas volumes down on mild weather

Spanish energy giant Repsol said Thursday its Canaport liquefied natural gas (LNG) import terminal in Canada has during the last year regasified 30.4 percent less of the fuel than the year before.

Canaport’s LNG regasification volumes reached 16 trillion British thermal units (tBtu) in 2016, as compared to 23 tBtu the year before.

“During the year, the absence of sustained low temperatures over time, and the fall in the price of gas substitutes (eg: fuel and other petroleum products) adversely affect the peak prices of the winter period, thus reducing our capacity to capture the plant’s commercial margin, which explains the decrease in regasified volume,” Repsol said in its full-year results report.

To remind, LNG World News previously reported that Canada’s imports of LNG reached an all-time low last year since the country started importing the chilled fuel in 2009.

Canada imported only four LNG cargoes during the year, equivalent to about 329 million cubic meters, the data by the National Energy Board showed.

The country imports LNG only via the Canaport terminal in Saint John. All of the 2016 cargoes were imported by Repsol under short-term deals.

During 2016, Repsol also shelved plans to add LNG export facilities at its Canaport terminal saying that “market conditions and project challenges make it unattractive for third-parties and off takers to join the project.”

Canada has more than dozen proposed LNG export projects, almost all located in the province of British Colombia, however, the global slump in oil and gas prices has undermined their feasibility and delayed investment.

Woodfibre LNG is currently the only project in B.C. that has taken a final investment decision and plans to start building a 2.1 mtpa export terminal this year.

LNG World News Staff