Montney Formation: The Hidden Key to B.C.'s LNG Success

The Montney formation in northeast British Columbia holds roughly 70% of Canada's remaining natural gas resource. For years, upstream producers like ARC Resources and Tourmaline have been methodically developing the resource in anticipation of export demand.

The inland industrial system that makes coastal export possible is often overlooked, but it's essential to building a strong LNG industry. The Montney formation produces associated liquids, propane, butane, condensate, and natural gasoline, which can be sold into separate markets in Asia.

Japans' rapidly expanding propane dehydrogenation industry has been growing at 15% annually since 2020, while South Korea uses propane and butane for petrochemicals and transportation. AltaGas's RIPET terminal in Prince Rupert has already begun exporting propane to Japan and Incheon, with the REEF expansion currently under construction.

The Montney story is one of real industrial development over decades, demonstrating what it can do. The U.S. Gulf Coast LNG export expansion has been impressive, but Canada's capacity remains in its early stages. With projects like LNG Canada and Cedar LNG coming online, B.C.'s natural gas production has more than doubled since 2010.