CANADIAN NATURAL GAS PRICES Canadian natural gas prices are not likely to rise in the next few years, which is as far as anyone can reasonably predict. This reality is going to pose a challenge over that time period in the quest to get more biomass energy projects off the ground. Keith Schaefer, editor and publisher of Vancouver-based Oil & Gas Investments Bulletin, says continued supply increases of natural gas are the major factor that will keep Canadian gas prices low. He points to brokerage firm Raymond James’ out-line of how the fast-growing and low-cost gas production from the stacked Marcel-lus and Utica shales in the northeastern U.S. could displace the use of all Western Canadian natural gas in Eastern North America in the short-to medium-term. “There are currently four major proj-ects underway that are going to make the inevitable export of United States natural gas to Canada happen,” Schaefer notes. “Those projects combined should allow for enough U.S. natural gas to get into Eastern Canada so that no Western Cana-dian natural gas will be needed. This will mean that the Northeast United States will have gone in just a few years from being almost fully dependent on Canada for natural gas, to having the ability to ex-port natural gas to Canada – and fill all of eastern Canada’s needs. Meanwhile, a portion of Western Canadian natural gas production will need a new home, with Canadian natural gas prices therefore fac-ing some stiff headwinds.” EVOLVING ENERGY SOURCING The recent political situation involving Ukraine and Russia is stirring up calls for Europe to start looking hard for en-ergy alternatives to Russian fossil fuels. U.S. President Obama told the European Union in April 2014, that while it can look to the United States to help it reduce dependency on Russian energy (the U.S. has already agreed to relax restrictions on gas exports to Europe, for example), it must also look beyond. The EU cur-rently relies on Russia for about a third of its oil and gas needs. The 28-member association is indeed stepping up efforts to diversify its energy sources, and some of those include biomass. Several Euro-pean countries, including Germany and England, already have bio-energy plans in place, which is great news. Canadian BIOMASS 27
Canadian Biomass September October 2014: Page 27
