The global demand for LNG is higher and has happened sooner than analysts originally predicted.
However, over the last 6 years in Western Canada, there has been a dramatic shift in the regional gas industry, with most new production coming out of the Montney formation, which straddles the BC-Alberta border. This prolific production comes irrespective of the LNG industry, says David Austin in a recent Business in Vancouver article.
David explains that the “Encana Corp. has told analysts that it now considers the Montney a condensate play rather than a gas play.”
There is such value in Montney’s light oil, condensate, propane and other liquids that the gas has almost become a byproduct.