This brief Presentation will discuss the market for natural gas as well as exporting of LNG. The presentation will look at commodity prices, government policies, market size, key players and GHG

1. Policy – Liquefied Natural
Gas (LNG)
By: Paul Young, CPA, CGA

2. Agenda
• What is Liquefied Natural Gas
• Market Size
• Government Policies

3. What is Liquefied Natural Gas
• LNG is a clear, colourless and non-toxic liquid which forms when
natural gas is cooled to -162ºC (-260ºF). The cooling process shrinks
the volume of the gas 600 times, making it easier and safer to store
and ship. In its liquid state, LNG will not ignite.
• When LNG reaches its destination, it is turned back into a gas at
regasification plants. It is then piped to homes, businesses and
industries where it is burnt for heat or to generate electricity. LNG is
now also emerging as a cost-competitive and cleaner fuel, especially
for shipping heavy-duty road transport.

4. Commodity Prices/Natural Gas

5. Natural Gas Consumption

6. Power Generation/Natural Gas

7. Power Generation/Natural Gas

8. GHG/Natural Gas

9. Government Policies
• Prime Minister Harper, made the announcement recently while at a
technical university in Surrey, B.C. He said companies will receive a
capital cost allowance of 30 per cent for equipment used in natural
gas liquefaction and 10 per cent for buildings at a facility that liquefies
natural gas.
• Tax relief will be available for capital assets acquired between now
and 2025.
• The Prime Minister also said the tax incentives will provide the right
conditions for the LNG industry to succeed and compete in the global
economy while spurring job growth.

10. Key Provinces
• British Columbia
• New Brunswick
• Nova Scotia
• Saskatchewan
• Alberta

11. Issues
• Natural Gas Pricing
• Port Expansion/Exports (Sydney, Prince Rupert)
• Regulatory approval
• Pipelines
• LNG Plants