Why Has British Columbia Chosen Gas Over Oil?

While Calgary may be known for its lucrative oil sands, British Colombia has other priorities. The Canadian province has fiercely opposed Kinder Morgan's US$5.8 billion oil pipeline expansion, and maintains that the project won't prevent it from welcoming natural gas exporters.

According to British Colombia's finance minister Carole James, Kinder’s plan to transport more crude to the Pacific shore poses a major threat to coastal fisheries and tourism. If the project goes ahead it will increase tanker traffic in the region by seven-fold which could have an enormous impact on the province's delicate ecosystem.

Cool climate set to lure LNG investors

The pipeline won federal approval in November, and has been publicly condemned by the British Columbian government. Though the antipathy doesn’t extend to liquefied natural gas. Thanks to its cool climate James asserts that BC is a great location for natural gas terminals, offering refiners cost-efficient conditions for chilling and liquifying.

While two multi-billion-dollar LNG developments have recently been cancelled in the province, James is confident that other investments will move forward.

“Let’s just say I’m optimistic not pessimistic on at least a plant coming to British Columbia,” reveals James.

BC hit by serial withdrawals

A recent move from Petroliam Nasional Bhd hit BC hard, with the Malaysian owned oil and gas company shutting down its $27 billion plan to ship LNG from Western Canada to Asia. It was triggered by US brokers peddling big supplies of shale gas which essential forced the company out of the market. China’s Cnooc Ltd. encountered the same problem, recently axing its Aurora LNG development.

Just like refining crude, chilling and liquifying natural gas is a complex process. For a closer look at the specifics don't miss 'Issues With Liquefied Calibration Gas Mixtures.' Exploring temperature stabilisation, size and other factors, it spotlights five industry approved rules to maximise liquified gas blends.