Monday, October 8, 2012

LNG: Corridor Resources ponders increasing sales of natural gas by exporting through Saint John.

October 4, 2012 – 8:50pm


LNG tanks and dock from Mispec Beach, Saint John, NB. Art MacKay photo

A liquefied natural gas plant and terminal in New Brunswick could be converted into an export facility to help develop the region’s onshore oil and gas industry, says the president of Corridor Resources.

Phillip Knoll told an energy conference Thursday in Halifax that Canaport LNG in Saint John is underutilized and a candidate to make the switch.

“There are international parties very interested in that,” he said during a panel about onshore development.

“But those parties need a portfolio of supplies that can backstop a long-term supply for them, a 20-year supply of a sizable resource.”

In an interview, Knoll said there has been interest from western Europe, India and China in having natural gas shipped from Eastern Canada rather than continue to bring fuel in.

“Across the world, they’re looking for economical access to natural gas.”

Corridor of Halifax owns the McCully gas field near Sussex and is also exploring three large oil and gas prospects: Old Harry, an undersea area in the Gulf of St. Lawrence, Quebec’s Anticosti Island and the Frederick Brook shale play near Elgin, N.B.

Knoll said he also thinks companies would be interested in converting the Repsol-led operation, which is reported to be for sale.

“I’m sure there are numerous parties interested in Repsol’s LNG value chain.”

Canaport, partially owned by Irving Oil, could be converted to an export facility in about 18 months, he said.

The Nova Scotia and New Brunswick governments should encourage more use of Atlantic Canada’s natural gas infrastructure, including the Maritimes and Northeast pipeline, Knoll said.

“Our ability to attract industry here and to develop an ability to export more energy into the U.S. northeast is dependent on us engaging this situation.”

British Columbia, one of the areas working to develop oil and gas reserves, lags behind this region when it comes to infrastructure needed to create export markets, he said.

However, the western province’s campaign to build pipelines and LNG terminals has sparked controversy in the same way the handful of proposed projects have here.

Other panellists said the industry has work to do to convince government and the public that development can be done without harming the environment.


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LNG: Corridor Resources ponders increasing sales of natural gas by exporting through Saint John.

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