LNG Canada: a game changer for the WCSB?

In early October, 2018, LNG Canada project partners - Shell, PETRONAS, Mitsubishi, PetroChina and KOGAS - took a final investment decision on the west coast LNG export facility in Kitimat, British Columbia. The impressive consortium of the world's largest LNG players, established, low-cost upstream positions, tax breaks, and lower construction costs all contributed to pushing the project over the finish line. The equity structure of the project creates a compelling scenario for the over-supplied Western Canadian market - development strategies of each project partner will be monitored closely by Western Canadian Sedimentary Basin (WCSB) operators. The implications on the AECO market and contracting strategies will be substantial.