Liquefied natural gas (LNG) could increase annual exploration and production spending in B.C. by $10.5 billion a year within seven years, according to a report from the National Bank's oil and gas division.
The report says spending could reach $2.4 billion by next year and ramp up to "$10.5 billion per year by the end of the decade."
The report, Quantifying the LNG Impact, estimates that 6,500 new gas wells will be needed by 2021 to meet demand from four large LNG facilities in northwestern B.C.
The LNG projects include: Kitimat LNG, which has received environmental clearance; LNG Canada and Prince Rupert LNG, both of which are being reviewed by the B.C. environmental office; and Pacific NorthWest LNG, which has applied for environmental approval.
In a separate report, the B.C. government estimates 75,000 workers will be needed to fuel and staff the LNG projects. As well, the National Bank forecasts that 15,000 housing units - or beds - will be needed to accommodate workers.
"This is a huge amount of work," said Keith Schaefer, a Vancouver-based oil and gas analyst. "[B.C. Premier] Christy Clark was right. This has the potential to resemble the [Alberta] oilsands."
from Western Investor September 2013
