INFOGRAPHIC: Why the Russia-China LNG won’t crimp BC imports
Resource Works explains why the Russia-China liquid natural gas contract will not impede demand from British Columbia.
Announced in early May, Russia will sell China $400 billion of natural gas.
Keith Head, a professor at the Sauder School of Business who specializes in international trade and economic geography, says there is still lots of room for Canadian LNG:
The cost of $400 billion seems high but it needs to be kept in perspective. This amount is for 30 years and the contracts are back-loaded. Starting in 2018, China will import 38 billion cubic metres of gas as a result of the new deal. This is less than half of the natural gas Canada exported to the U.S. in 2011.
The Tyee, however, called the deal a “train wreck”.