(AlbertaIndex, September 23, Tuesday) --- Alberta’s long-suffering natural gas industry stands to reap huge gains if Kitimat LNG Inc succeeds in its plans to develop a terminal in British Columbia to export liquefied natural gas (LNG) to the energy-hungry markets of Asia. The terminal will be sited near Kitimat port in on the Calgary-based company’s existing site at Bish Cove.

       Rising natural gas demand in Asia and recent increases in supply throughout North America – including in the US, Canada’s traditional export market – have led to significantly higher natural gas prices in Asia compared with North America. US natural gas prices have been stuck at between US$7 and $9 per million BTU for most of this year, while in Asia, LNG have been traded with increasing frequency at record spot prices of US$20 per million Btu. Furthermore, LNG prices in Asia are expected to continue to climb.

Kitimat LNG Inc said current market and pricing conditions provide a compelling opportunity for companies looking to export LNG from North America to Asia.

“Kitimat continues to be a viable and advantageous location to build a West Coast LNG terminal,” said Rosemary Boulton, President of Kitimat LNG. “The growing economies of the Pacific Rim and rapidly increasing demand for LNG make Asia a natural market for BC’s plentiful and expanding supplies of natural gas. Kitimat is close to Asian markets and an extensive pipeline network already connects BC gas suppliers to the Kitimat area.”

The fundamental changes altering the global natural gas market have made Kitimat LNG’s proposal to export LNG more viable than an earlier proposal to import LNG to North America through a regasification terminal located in Bish Cove.

“Delays and cancellations of several LNG liquefaction terminals have caused major LNG shortfalls globally. Regasification terminals in North America are underutilised. At the same time, the trend away from coal is accelerating and demand for clean burning gas has never been stronger,” said Ilene Schmaltz, the company’s vice president for supply marketing.

“These long-term trends create opportunities for stable sources of natural gas supply to take advantage of high demand in Pacific Rim markets.”

The export plan provides a number of benefits for the province of BC, the Haisla First Nation, the district of Kitimat, and the local region including the creation of up to 1,500 construction jobs and 100 permanent jobs will increase to 100, and the opportunity to diversify the regional economy and increase the use of local personnel, goods and services.

“The Haisla First Nation offers its full support to Kitimat LNG and its new LNG export proposal,” said Haisla Chief Counsellor Steve Wilson. “Our community has much to offer to the proposed terminal, and we look forward to the employment and skills training a new LNG terminal would provide.”

Kitimat has entered into a memorandum of understanding with an unnamed “leading multinational corporation” to conduct a feasibility study to participate in the project.

Kitimat LNG’s previous import proposal received all regulatory, environmental and government approvals, and the company will work with all levels of government on approvals, processes and permitting for the export proposal.

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