Canadian exports of LNG to Asia seen as enormous opportunity

The huge price differential between Canada and Asia presents opportunities for Canadian exports of liquefied natural gas (LNG), speakers at the Asian Financial Forum in Hong Kong said.

“If Canada exports LNG to Asia, the potential for arbitrage is enormous. The price of gas and oil in Asia is significantly higher than Canada. It’s an incredible opportunity for banks,” said Kevin Lynch, vice-chairman of BMO Financial Group, a North American financial services firm.

Last year, the natural gas price in North America was US$3.71 per million British thermal units (Btu), much cheaper than the natural gas price of US$16.45 per million Btu in South Korea and Japan, Lynch cited.

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