An underrated long-term factor for the Canadian (and US) dollars is the race to build natural gas export capacity.
I recently wrote a primer on the race to win continental export supremacy. Canada was way out ahead but it has absolutely bumbled the advantage and is now an underdog.
One company hoping to build an export facility, Spectra Energy, says Canada is close to defeat.
Comments from company president Doug Bloom today:
- The US presents ‘formidable’ competition to Canada
- Canada behind Australia and the US on LNG export proposals
- Canada’s LNG cost inflation risk may be a ‘limiting factor’
The good news from Bloom is that Canada might have a $2/mmbtu advantage in exports to Asia but that doesn’t matter if the export hubs and pipelines are never built.
