West Coast LNG Boom: North America Shifts Focus to Asia
The North American liquefied natural gas (LNG) market is shifting its focus from the Gulf Coast to the West Coast, particularly in British Columbia and Baja California. A key factor driving this change is the proximity of the West Coast to Asian markets, which can reduce shipping times by up to two weeks compared to the Gulf Coast.
LNG Canada has made a positive final investment decision to expand its Kitimat facility from 14 million metric tons per annum (MMtpa) to 28 MMtpa. The project's partners include Shell, PETRONAS, PetroChina, Mitsubishi Corporation, and KOGAS. This expansion is expected to be completed in the early 2030s.
Other West Coast projects, such as Woodfibre LNG, Cedar LNG, and Ksi Lisims, are also moving forward, with some having already secured tentative sales deals for their projected output. These projects aim to take advantage of the proximity to Asian markets, reducing shipping costs and risks associated with navigating through the Panama Canal.
Meanwhile, in Mexico, Permian gas is being piped towards the Pacific coast, enabling gas to flow along an integrated system from the Waha Hub to Mexico's west coast. This could support the development of projects like Gato Negro LNG, which plans to transport gas from the Permian Basin to the Mexican coast for export.
Additionally, Sempra's ECA LNG in Baja California has shown both promise and challenges, with an inaugural cargo being lifted by TotalEnergies but experiencing damage during post-cargo inspection. Mexico Pacific's 15-MMtpa Saguaro project remains a wildcard in the region.