British Columbia may reap rewards from gas

CALGARY, Alberta, May 12 (UPI) -- Natural gas growth means the provincial economy in British Columbia outpaces the rest of Canada, through the market carries risk, a national report said.

The NEB published its 2016 outlook for provincial and territorial energy trends, finding British Columbia is projected to gain the most from an emerging market for natural gas.

Canada relies heavily on the North American market for exports. With Asian economic growth outpacing that of North America, the government is keen on tapping into new foreign markets for gas with port facilities like Kitimat in British Columbia.

In January, the NEB gave its consent to LNG Canada Development Inc. for an export license with a maximum capacity of 52.7 trillion cubic feet of natural gas from Kitimat, one of the first licenses of its kind approved by the Canadian energy regulator. Last week, the provincial government signed off on the last of the permits needed for TransCanada's Coastal GasLink pipeline project, slated to connect to a proposed liquefied natural gas export facility on the western Canadian coast.

The NEB finds British Columbia leads the nation in terms of expected natural growth and its economy is expected to grow faster than the Canadian average through 2040. That contrasts with economies like Alberta's, where the NEB finds oil production gains starting to slow down.

Shelley Milutnovic, a chief economist at the NEB, said energy planning needs diversity to match the national landscape.

"Recognizing this diversity will be critical as we deal with current energy market uncertainties and begin to implement the policies and technologies that will transform Canada to a low-carbon future," Milutinovic said.

The NEB study finds that British Columbia could face headwinds because of fluid prices for natural gas and the variety of issues emerging for LNG. Canada's energy plans have frustrated First Nations that are concerned the development of oil, gas and associated infrastructure may harm the ecosystems upon which they depend.

A final decision on Kitimat LNG facilities is expected later this year.