Shrinking Canadian expectations
The future of unconventional gas drilling in the western basins is uncertain because of the cancellation of several high-profile LNG projects
In Canada—and especially British Columbia (BC)—gas drilling is (or was) dependent on approvals for multi-billion-dollar liquefaction terminals on the country's west coast. Proponents had to demonstrate at least 20 years of proven reserves to secure export licenses. This, in turn, sparked a prolonged boom in unconventional shale plays such as the Montney. So, despite persistently low North American gas prices, Canadian drilling and production held up reasonably well—as long as there were proposed outlets for the fuel. That changed in July 2017 after Petronas abruptly cancelled a proposed C$36bn ($28.9bn) terminal in Kitimat, on BC's northern shore. A sizeable portion of that outlay, some C$6b
Also in this section
4 March 2025
The US and Canada are boosting capacity builds for renewable diesel and biofuels, while Central and South American countries are investing heavily to upgrade and expand their domestic refining sectors
4 March 2025
EU net-zero polices have shifted refining investment among member states, while across the region countries and companies continue to adjust to changes in trade flows caused by the war in Ukraine
4 March 2025
Gas auctions underperform, signalling a slow start to 2025 after bumper 2024
3 March 2025
The Middle East is focusing on modernisation and expansion projects, while Africa is seeking to reduce its imports of refined products
