This document provides an overview of the global liquefied natural gas (LNG) industry and British Columbia's role in it. It notes that LNG demand is growing due to increasing global population and economic growth. Several LNG export projects have been announced in BC that could provide $46 billion in tax revenue and $1 trillion in economic activity by 2040. The LNG value chain involves exploration and production, pipelines, liquefaction, storage, marine transport, re-gasification and distribution. BC must compete with major LNG exporters like Qatar, Indonesia, and Russia to participate in the growing Asian LNG market.

1. Kitselas nation & the World energy economy
LNG 101
Mark Podlasly, NlakA’pamux nation (BC)
markwolfpod@gmail.com August 15, 2014

2. SOURCE: BC Government

7. Nightman1965/Shutterstock

8. CreativeNature.nl/Shuttersock
Nightman1965/Shutterstock

9. CreativeNature.nl/Shuttersock
Nightman1965/Shutterstock
Amy Johansson/Shutterstock

10. CreativeNature.nl/Shuttersock
Oleksandr Kalinichenko/Shutterstock
Nightman1965/Shutterstock
Amy Johansson/Shutterstock

11. ~$180 billion
CreativeNature.nl/Shuttersock
Oleksandr Kalinichenko/Shutterstock
Nightman1965/Shutterstock
Amy Johansson/Shutterstock

12. ~$180 billion
CreativeNature.nl/Shuttersock
62,700 jobs
Oleksandr Kalinichenko/Shutterstock
Nightman1965/Shutterstock
Amy Johansson/Shutterstock

13. CreativeNature.nl
Trans-CANADa RAILWAY
Amy Johansson
200 times
$0.9 Billion
(2014 dollars)

14. 2010 Olympic games
Amy Johansson
24 times
$7.5 Billion
(2014 dollars)

15. US Moon landing $118 Billion (2014 dollars)
Amy Johansson

16. Why LNG? Why now?
Hamsterman/Shutterstock

18. Growing Population
alexmillos/shutterstock
Source: United Nations

19. Growing Population
7.2 billion (2014)
alexmillos/shutterstock
Source: United Nations

20. Growing Population
7.2 billion (2014)
alexmillos/shutterstock
9.6 billion (2050)
Source: United Nations

21. World Population
(billions) developed
* Source: BP Statistical Review of World Energy 2012
emerging

22. Getting Richer
Tetiana Yurchenko/Shutterstock

23. World Wealth
($ trillions)
* Source: BP Statistical Review of World Energy 2012
developed
emerging

24. Black Jack/Shutterstock

25. Black Jack/Shutterstock

26. Black Jack/Shutterstock

27. Black Jack/Shutterstock

28. BC First Nations & World Energy Markets
Mark Podlasly © 2013 mark@brookmere.net
Lisa S./Shutterstock

29. Energy demand

30. Energy use

31. * Source: BP Statistical Review of World Energy 2013
Energy source

32. Geo-grafika/Shutterstock
vasabii/Shutterstock
nikkytok/Shutterstock

33. World Energy Demand
7.5 15 22.5 30
+ 300%
TODAY 2050

35. 2012 LNG Consumption: 238 MTA
360 ships

36. ASIA: biggest LNG buyer
Others
Italy 11.6%
Tur2k.e2y%
Fra2n.c4e%
U3K.1 %
4.3%
Spain
6.6%
Taiwan
5.3%
China
6.2% India
6.3%
Korea
15.4%
Japan
36.7%
~ 70% LNG goes to
Asia
!
Largest market =
Japan

37. LNG Competitors 2012 = 238 MTA
Norway
1.43%
Eq. Guinea
1.60%
Peru
1.64%
USA
0.08%
Yemen
2.15%
Egypt
2.15%
UAE
2.36%
Brunei
2.86%
Oman
3.41%
Russia
4.59%
Algeria
4.63%
Trinidad
6.06%
Indonesia
7.61% Nigeria
8.41%
Australia
8.75%
Qatar
32.56%
Malaysia
9.72%
Qatar
Malaysia
Australia
Nigeria
Indonesia
Trinidad
Algeria
Russia
Oman
Brunei
UAE
Egypt
Yemen
Peru
Eq. Guinea
Norway
USA

38. BC’s LNG Competitors
Qatar
Indonesia
Russia
Equa.
Guinea
Malaysia
Nigeria
Brunei
USA
Australia

39. BC LNG Announcements
Vancouver
Kitimat
Prince
Rupert
Prince
George
KITIMAT
Douglas Channel LNG (0.7 mtpa)
Kitimat LNG (5 mtpa)
LNG Canada Gas (37 mtpa)
PRINCE RUPERT
Western Canada LNG (32 mtpa)
Pacific Northwest LNG (18 mtpa)
OTHERS
South Coast
Vancouver Island

40. BC LNG Announcements
Vancouver
Kitimat
Prince
Rupert
Prince
George
$46 billion tax revenue
$1 trillion activity (to 2040)

41. BC LNG Announcements
40+ First Nations
overseas Money/Buyers/PLAYERS
Global market = global rules

42. EXPLoration &
Processing Pipeline Liquefaction Storage

43. Marine Transport Storage RE-gas Distribution

44. LNG VAlue chain
EXPLoration &
Processing Pipeline Liquefaction Storage Marine Transport Storage RE-gas Distribution
An integrated energy system

45. LNG VAlue chain
EXPLoration &
Processing Pipeline Liquefaction Storage Marine Transport Storage RE-gas Distribution

46. LNG VAlue chain
Source: Shell

47. LNG VAlue chain
EXPLoration &
Production Pipeline Liquefaction Storage Marine Transport Storage RE-gas Distribution

48. LNG VAlue chain
EXPLoration &
Production Pipeline Liquefaction Storage Marine Transport Storage RE-gas Distribution
Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

49. LNG VAlue chain
EXPLoration &
Production Pipeline Liquefaction Storage Marine Transport Storage RE-gas Distribution
Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

50. Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

51. Carbon
Hydrogen
Liquefaction
+ storage
Methane: colorless, odorless,
combustable gas
Created by decomposing plants and
animals
Plants die, fall to seafloor, covered
by sediment
Millions of years, high pressure and
heat, creates oil and natural gas Michelangelus/Shutterstock
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

52. Conventional Gas
‘cap’ rock catches rising natural
gas like an umbrella
!
a hole drilled through the cap rock
!
cap rock can be thousands of feet
deep in the earth
IMAGE: U.S. Energy Information Association
Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

53. Unconventional Natural Gas
Tight Natural Gas: hard rock, fracking
Shale Gas: in shale rock, fracking
Deep Natural Gas: +15,000 feet
Image: John T Takai/Shutterstock
Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

54. Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

55. huyangshu/Shutterstock
Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

56. Dabarti CGI/Shutterstock
+ $
Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

57. Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

58. Dabarti CGI/Shutterstock
Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

59. Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

60. Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

61. Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

62. Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Pipeline

63. Pipeline
Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas

64. Liquefaction

65. Pipeline
Liquefaction
+ storage
Oleksandr Kalinichenko/Shutterstock
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
Oleksandr Kalinichenko/Shutterstock

66. Nadja1/Shutterstock
Pipeline
Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas

67. Pipeline
239
650
Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
WORLD
LNG Capacity

68. Pipeline
Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas

69. Pipeline
Liquefaction
+ storage
Exploration
& Production
Distribution
Marine
transport
Storage +
re-gas
EXPLoration &
Production Pipeline Liquefaction Storage Marine Transport Storage RE-gas Distribution

70. Kitselas nation & the World energy economy
LNG 101
Mark Podlasly, NlakA’pamux nation (BC)
markwolfpod@gmail.com August 15, 2014