FORT ST. JOHN, B.C. – According to an article in the Financial Post, a new report from Moody’s Investor Service is stating that LNG prices will remain low past 2020 and put a damper on Canadian projects.
Moody’s says Asian demand for LNG is weakening and new supplies will begin to enter the market. There have been report from other analysts saying that the markets will balance in the next few years.
A Moody’s analyst says in the article that Canada missed the chance to enter the market based on oversupply but also says that the cause stems from ‘political fumbles’ and opposition to the projects at a time where it seemed companies were more open to making bigger investments for LNG in Canada.
The report comes at a crucial time for Christy Clark and the BC Liberal Party. During the last election, Clark heavily campaigned the topic of LNG and with the next provincial election coming up in May, Clark and the Liberals remain confident that LNG will be a viable venture for the province of British Columbia.
Original article by the Financial Post: http://business.financialpost.com/news/the-tide-has-turned-against-them-b-c-lng-projects-stranded-amid-global-glut