View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. Comment
August 27, 2020

Impact of Covid-19 on LNG sector in Canada

By GlobalData Energy

The advent of Covid-19 has disrupted the financial stability of many a sector and Canada’s LNG sector is no exception. Sharp fall in gas prices and LNG supply glut compounded by the pandemic have forced companies to delay LNG projects in the country. Besides, prevailing market conditions are making it difficult to find investors even for projects in Western Canada, which are relatively closer to some of the biggest LNG buyers in Asia such as China and Japan.

Poor economic outlook and battered demand of oil and gas have led to delayed financial investment decisions (FIDs) resulting in deferred timelines of upcoming LNG projects. Developers of Woodfibre LNG project have delayed the start of the construction by a year to 2021, due to unforeseen challenges caused by the pandemic. In April 2020, Pieridae Energy postponed the FID of its Goldboro LNG export plant in Nova Scotia, pushing the start of the project probably by a year to 2025.

Participants of Canadian LNG projects have been reducing their overall capital expenditure for 2020. Royal Dutch Shell Plc, Chevron Corporation, Petroliam Nasional Bhd, and Woodside Petroleum Limited have revised their capex guidance in response to weak market conditions due to Covid-19 pandemic.

Rising competition from new projects coming online in the mid-2020s across the globe amid a supply overhang might make it challenging for Canadian LNG producers to remain cost competitive. Additionally, the country’s LNG sector has to come up with strategies to thwart competition from upcoming LNG suppliers in the US and Africa.

Related Companies

Free Report
img

Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU