CPABC Industry Update Summer 2014 | Page 5

The LNG Facts “mtpa.” LNG production is measured in millions of (metric) tonnes per annum, known as MARKET Since 2000, global LNG demand has risen by an estimated 7.6% per year. This increase in demand is almost three times higher than the increase in demand for natural gas. LNG demand is forecasted to grow by 5%-6% per year through 2020. The world has almost 600 mtpa of LNG regasification capacity, far exceeding China and India are expected to current and projected supply or demand. be the biggest sources of future LNG demand. World regasification capacity could rise Natural gas will account for 25% of the world’s energy mix in 2035. INVESTMENT Between 2013 and 2023, there are an estimated 47 projects planned in BC. These projects are worth more than $500 million each. The expected total investment is $165 billion. by as much as 200 mtpa by 2020. As of March 2014, 13 LNG export facilities have been proposed or announced in BC. Of the 13 proposed or announced LNG facilities, 11 have applied to the National Energy Board for a licence to export LNG. 7 of these licences have already been granted. The average cost for the recently sanctioned and proposed projects is more than US$2.6 billion per mtpa. This cost is more than double the historic average. pecially port EXPORT More than 30 countries have proposed plans to build or add LNG import/regasification capacity. By 2020, the number of countries with import capacity could double to 50. * Main data source: Global LNG: Will new demand and new supply mean new pricing?, published by EY. Additional Info: Premier’s Liquefied Natural Gas