Mining and Energy

Domestic demand for natural gas to increase: TD Economics


Fri Nov 16, 2012 9:00am PST

Despite a U.S. natural gas glut, the demand for Canadian natural gas is expected to increase thanks to an expected rise in domestic power needs and oilsands expansion, TD Economics reports.

 

 

The sudden availability of cheap shale gas in the U.S. means the demand for Canadian natural gas from across the border is falling, TD Economics states in a special report on shale gas.

The lower demand for Canadian gas exports to the U.S. has resulted in Canada producing 16% less gas last year than it did in 2005 – a trend the National Energy Board expects to continue.

The good news is that expansion of the energy-intensive oilsands is expected to increase the demand for natural gas by 30% by 2020. The domestic demand is also expected to grow as more thermal power production comes from natural gas, increasing demand by 33%.

And as gas exports to the U.S. continue to fall, “lower demand from our traditional export market – the U.S. – means there is also the opportunity for producers to realize greater value for their reserves with the prospects for liquefied natural gas exports from B.C. to Asia,” the TD Economics report states.

nbennett@biv.com

@nbennett_biv

Tags: Asia, exports, National Energy Board, natural gas, energy



Things You Might Like »

Articles

Columns

Lists & Data


Comments »


NOTE: In order to comment, you must be a registered BIV.com user and be logged into your user account. If you do not have a BIV.com account, you may register here. If you have one of the following accounts: Google, Facebook, Twitter, Yahoo, OpenID, you are also able to comment, just click "Post as" button and then log into one of these services via Disqus.

blog comments powered by Disqus

Featured Video


Popular News



Upcoming Events